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GS Is Selling for €28 a Share

question 26

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GS is selling for €28 a share.A 3-month call on GS with a strike price of €30 is priced at €1.50.Risk-free assets are currently returning 0.3% per month.What is the price of a 3-month put on GS with a strike price of €30?


Definitions:

Required Rate

The minimum rate of return on an investment that a manager or investor is willing to accept before making an investment decision.

Equivalent Annual Cost

The cost per year of owning and operating an asset over its entire lifespan, considering both the initial purchase price and ongoing operating expenses.

Customized Tool

A tailored or specially made instrument or software designed to meet the specific needs of a user or task.

Required Return

The minimum return that an investor expects to achieve by investing in a particular asset, taking into account the asset's risk.

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