When the Non-Dividend Paying Stock Price Is $20,the Strike Price

question 14

Multiple Choice

When the non-dividend paying stock price is $20,the strike price is $20,the risk-free rate is 5%,the volatility is 20% and the time to maturity is 3 months which of the following is the price of a European put option on the stock

• A)19.7N(-0.1)-20N(-0.2)
• B)20N(-0.1)-20N(-0.2)
• C)19.7N(-0.2)-20N(-0.1)
• D)20N(-0.2)-20N(-0.1)

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