Suppose VS's Stock Price Is Currently $20

question 51

Multiple Choice

Suppose VS's stock price is currently $20. A six-month call option on VS's stock with an exercise price of $15 has a value of $7.14. What is the price of an equivalent put option? The six-month risk-free interest rate is 5 percent per six-month period.

• A)$1.43
• B)$9.43
• C)$8.00
• D)$12.00

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