Multiple Choice
A stock is currently selling for $21.00.A 3-month call option with a strike price of $20 has an option premium of $1.30.The risk-free rate is 3 percent and the market rate is 8 percent.What is the option premium on a 3-month put with a $20 strike price? Assume the options are European style.
A) $0.00
B) $0.15
C) $0.35
D) $0.55
E) $0.75
Correct Answer:
Verified
Correct Answer:
Verified
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