Solved

The Price of a European Put Option on Scotiabank Stock

Question 97

Multiple Choice

The price of a European put option on Scotiabank stock with one year to expiry is trading at $2.25,and the price of a European call option is trading at $1.60.If the exercise price of the options is $45,and the risk-free rate is 5%,what must be the current price of Scotiabank stock?


A) $42.75
B) $45.00
C) $43.51
D) $42.21
E) $43.40

Correct Answer:

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