A 1-month $15 call option on BRU stock is priced at $1.45 while the 1-month $20 put option is priced at $3.45.Which one of these is the best estimate of the current price of one share of BRU stock?

Question

Quizplus · Accepted Answer

Assuming the time value of the options is minimal,the stock price can be estimated as follows:
Estimated stock price = $15 + $1.45 = $16.45
Estimate stock price = $20 − $3.45 = $16.55
Thus,a $16.50 estimate is quite reasonable.

A 1-Month $15 Call Option on BRU Stock Is Priced