Top Flight Stock Currently Sells for $53

question 104

Multiple Choice

Top Flight Stock currently sells for $53. A one-year call option with strike price of $58 sells for $10, and the risk-free interest rate is 5.5%. What is the price of a one-year put with strike price of $58?

• A) $10.00
• B) $12.12
• C) $16.00
• D) $11.98
• E) $14.13

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Definitions:

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A type of good that does not quickly wear out and is therefore used over a longer period, such as appliances, vehicles, and furniture.

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The segment of the economy that involves offering intangible products such as healthcare, education, and financial services.