Consider the case of an exchange option in which the underlying stock is Eli Lilly and Company with a current price of $56.00 per share.The strike asset is Merck,with a per share price of $52.00.Interest rates are 5% and the 3-month call option is trading for $7.00.What is the price of the put?
A) $3.00
B) $4.00
C) $7.00
D) $11.00

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The Answer of Consider the case of an exchange option in which the underlying stock is Eli Lilly and Company with a current price of $56.00 per share.The strike asset is Merck,with a per share price of $52.00.Interest rates are 5% and the 3-month call option is trading for $7.00.What is the price of the put?
A) $3.00
B) $4.00
C) $7.00
D) $11.00

Consider the Case of an Exchange Option in Which the Underlying