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

question 18

Multiple Choice

A call option with 60 days to maturity,exercise price of $12.00,underlying spot price of $14.00 and risk-free rate of 7% p.a.is valued at $2.20.What is the value of a put option with the same characteristics? (Assume the call option premium is correctly priced and there are no dividends. )

• A) \( \$ 0.02 \)
• B) \( \$ 0.06 \)
• C) \( \$ 0.07 \)
• D) \( \$ 0.08 \)

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A specialist in mathematics who focuses on developing new mathematical theories, models, and concepts, often working on problems that do not have immediate practical applications.

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The branch of physics concerned with the forces that occur between electrically charged particles, encompassing both electricity and magnetism.