The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate all maturities) is 6% per annum, and the time to maturity is one year. What to the nearest cent) is the price of a one-year European put option on the stock with a strike price of $50? _ _ _ _ _ _

Question

Quizplus · Accepted Answer

The Answer of The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate all maturities) is 6% per annum, and the time to maturity is one year. What to the nearest cent) is the price of a one-year European put option on the stock with a strike price of $50? _ _ _ _ _ _

The Price of a European Call Option on a Non-Dividend-Paying