You just bought a european call option with a strike of 25, Finance Basics

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You just bought a european call option with a strike of 25

Question: You just bought a European call option with a strike of $25 for BAC stock that matures in 3 months. You paid a premium of $2.40. BAC standard deviation is current 20% and the stock is currently selling for $23.16. The current risk-free rate for the next three months is 1.25% per annum with continuous compounding. What is the price of a European put option on BAC with the same maturity and strike price as the call you bought?

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Finance Basics: You just bought a european call option with a strike of 25

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Finance Basics: You just bought a european call option with a strike of 25

Reference No:- TGS02743106

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