Solved: What is the option premium on a 2-month call, Finance Basics

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What is the option premium on a 2-month call

Question 1: A stock is selling for $26.00. A 2-month put option with a strike price of $30.00 has an option premium of $4.15. The risk-free rate is 2.5% and the market rate is 9.75%. What is the option premium on a 2-month call with a $30.00 strike price? Assume the options are European style.

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Finance Basics: What is the option premium on a 2-month call

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Finance Basics: What is the option premium on a 2-month call

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