What is the value of a put option written on the stock, Financial Management

+44 141 628 6080
[email protected]

What is the value of a put option written on the stock

Problem

The current price of a stock is $ 62.53 and the annual eftecthre risk-tree rate is 11.5 percent. A call option with an exercise price of $55 and one year until expiration has a current value of $ 11.56. What is the value of a put option written on the stock with the some exercise price and expiration date as the call option?

Request for Solution File

Ask an Expert for Answer!!

Financial Management: What is the value of a put option written on the stock

Reference No:- TGS03258371

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Financial Management

Q : How much will the insurance company pay

Rusty Reft, who lives in Territory 5 carries 10/20/5 compulsory liability. How much will the insurance company pay? What is Rusty's share of the responsibility?

Q : Which one will be preferred by bondholders

A firm is about to issue debt with a face value of $100. Which project will shareholders choose? Which one will be preferred by bondholders?

Q : Interrelationship between biodiversity and healthy society

Problem: Develop a mind map showing the direct interrelationship between biodiversity and healthy society.

Q : What is the expected growth rate of the dividends

If the current price of the stock is $ 17.49 what is the expected growth rate of the dividends? Give your answer to the nearest .1%.

Q : What is the value of a put option written on the stock

What is the value of a put option written on the stock with the some exercise price and expiration date as the call option?

Q : What is its wacc

If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC?

Q : Calculate the equivalent payoff at the one-year point

A company has agreed that it will pay 3.7% on $50 million. Calculate the payoff at the end of 15 months. Calculate the equivalent payoff at the one-year point.

Q : Identify the plant as a non-vascular or seedless vascular

Describe the plant that you have chosen, Identify the plant as a non-vascular, seedless vascular, gymnosperm, or angiosperm. Write its scientific name properly.

Q : What is the market value of the share

The company paid a dividend of $1.75 last week. If the required rate of return is 20 per cent, what is the market value of this share?

1931182

Questions
Asked

3,689

Active Tutors

1414155

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported