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AK Scott's Stock Is Selling for $38 a Share

Question 54

Multiple Choice

A.K. Scott's stock is selling for $38 a share. A 3-month call on this stock with a strike price of $35 is priced at $3.40. Risk-free assets are currently returning 0.18 percent per month. What is the price of a 3-month put on this stock with a strike price of $35?


A) $0.21
B) $0.49
C) $4.99
D) $5.85
E) $6.20

Correct Answer:

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