Consider the Following Data for a European Option: Expiration =

question 12

Multiple Choice

Consider the following data for a European option: Expiration = 6 months; Stock price = $80; Exercise price = $75; Call option price = $12; Risk-free rate = 5% per year.Using put-call parity,calculate the price of a put option having the same exercise price and expiration date.

• A)$3.07
• B)$5.19
• C)$11.43
• D)$3.42Value of put = value of call - share price + PV of exercise price

---

Definitions:

Editing Stage

The phase in the writing process where content is reviewed and revised for clarity, coherence, grammar, and style, improving the overall quality of the text.

Grammatical Correctness

The adherence to the rules and standards that govern the structure and use of a language in written or spoken form.

Organization

The structured arrangement of parts, details, or processes within a system or entity, facilitating efficient operation or management.

Content

The information, experience, or subject matter provided in various forms such as text, video, images, or audio.