Using the Following Information,find the Price of the Put Option

question 44

Multiple Choice

Using the following information,find the price of the put option:
Stock price S_t=$55,interest rate I=5%,
Strike price X=$53,Call premium=$3,Maturity: T=3 months

• A) $0.47
• B) $0.62
• C) $3.47
• D) $0.35

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Definitions:

Trade-In Allowance

An amount credited to the buyer by the seller for a trade-in, which is applied to the purchase price of a new item.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Cash Price

The price of an item for immediate payment, as opposed to a higher price when paying on credit.

Productivity

A measure of efficiency, typically defined as the output of goods or services produced per unit of input, such as labor or capital.