A stock is currently selling for $34. It pays no dividend and has an annualized standard deviation of 39 percent. The strike price is $35 and 3 months to maturity. The risk-free rate is 4.2 percent per annum.

-What is the price of the put option?
A) $2.87
B) $2.91
C) $2.94
D) $2.99
E) $3.03

Question

A stock is currently selling for $34. It pays no dividend and has an annualized standard deviation of 39 percent. The strike price is $35 and 3 months to maturity. The risk-free rate is 4.2 percent per annum.

-What is the price of the put option?

-What is the price of the put option?
A) $2.87
B) $2.91
C) $2.94
D) $2.99
E) $3.03

Quizplus · Accepted Answer

The Answer of  A stock is currently selling for $34. It pays no dividend and has an annualized standard deviation of 39 percent. The strike price is $35 and 3 months to maturity. The risk-free rate is 4.2 percent per annum.

-What is the price of the put option?
A) $2.87
B) $2.91
C) $2.94
D) $2.99
E) $3.03

A Stock Is Currently Selling for $34