1. What is the value of a Put, given these characteristics: time to expiry = 3 months, strike price = $20 the Spot price is $23.50. The standard deviation of the annual stock returns is said to be 29%, the risk-free rate of interest would be 4.25%, and the dividend yield rate for the stock is 1.5%.
2. What is the value of a Call, given these characteristics: time to expiry = 3 months, strike price = $20 the Spot price is $23.50. The standard deviation[1] of the annual stock returns is said to be 29%, the risk-free rate of interest would be 4.25%, and the dividend yield rate for the stock is 1.5%.