You Are Considering Purchasing a Put Option on a Share

You are considering purchasing a put option on a share with a current price of $33. The exercise price is $35 and the price of the corresponding call option is $2.25. According to the put-call parity theorem, if the risk-free rate of interest is 4% and there are 90 days until expiration, the value of the put should be ________.

A) $2.25
B) $3.91
C) $4.05
D) $5.52

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free