The Current Stock Price Is $568

question 38

Essay

The current stock price is $568.36, a one-year call option with a strike price of $500 is $102, and the risk-free rate is 2%.What should be the price of a one-year put option with the same strike price?

---

Definitions:

Pricing Practice

The methods and strategies used by businesses to set and adjust prices for their products or services.

Average Revenue

The amount of money a company makes per unit of goods or services sold, calculated by dividing total revenue by the number of units sold.

Distributed Team

A group of individuals who work together from different geographical locations, often coordinating their efforts through technology.

Computer-based Interactions

Interactions that occur through or with the help of computers, including communication, transactions, or any form of exchange of information digitally.