The Price of a European Put Option on Power Financial

question 74

Multiple Choice

The price of a European put option on Power Financial Corp stock with one year to expiry is trading at $0.55,and the price of a European call option is trading at $2.15.If the exercise price of the options is $19,and the risk-free rate is 3.5%,what must be the current price of Power Financial stock?

• A)$20.00
• B)$20.60
• C)$21.15
• D)$16.76
• E)$19.96

---

Definitions:

Incapacitation

A criminal justice theory aimed at reducing crime by detaining or restricting the movements of convicted offenders to prevent them from committing further offenses.

Stereotype Promise

A concept suggesting that positive stereotypes about a group can lead to increased performance and outcomes for individuals within that group.

Nursing Field

The healthcare profession focused on the care of individuals, families, and communities to maintain or recover optimal health and quality of life.

Hate Crime

A crime committed against someone based on their race, religion, ethnicity, sexual orientation, or other such characteristic.