A stock is selling for $60 per share.A call option with an exercise price of $65 sells for $3.31 and expires in 4 months.The risk-free rate of interest is 2.8 percent per year,compounded continuously.What is the price of a put option with the same exercise price and expiration date?
A)$5.99
B)$6.23
C)$6.47
D)$7.21
E)$8.94

Question

Quizplus · Accepted Answer

$60 + P = $65e^{-(0.028)(1/3)} + $3.31; P = $7.21

A Stock Is Selling for $60 Per Share