A Put Option with 60 Days to Maturity,exercise Price of $12.00

question 39

Multiple Choice

A put option with 60 days to maturity,exercise price of $12.00 and the risk-free rate is 5% p.a.If a call option is trading at $2.30 and a put option with $0.06 and the current share price is $14.00,what is the arbitrage possible per contract according to put-call parity?

• A) \( \$ 0.00 \)
• B) \( \$ 0.02 \)
• C) \( \$ 0.06 \)
• D) \( \$ 0.10 \)

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Definitions:

Atomic

Relating to atoms, the smallest constituent unit of ordinary matter that has the properties of a chemical element.

Symbolized Categorical Statement

A logical statement that uses symbols to represent categorical propositions, typically involving qualifiers such as all, some, or no.

Categorical

Pertaining to categories, absolutes, or conditions that are explicit and unconditional, often used in logic to describe propositions that are universally true or false.

Symbolized

Represented or expressed with symbols or symbolic meaning.