Calculate the Value of Put Option with the Given Information

question 33

Multiple Choice

Calculate the value of put option with the given information. Value of the call option is $6.2, Exercise price is $58, risk-free rate of interest is 5.5%, time before the option expires is one year and the current value of underlying assets is $52. Consider the value for 'e' as 2.71828.

• A) $9.10
• B) $12.20
• C) $6.20
• D) $8.92

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Definitions:

DBT

Dialectical Behavior Therapy, a cognitive-behavioral treatment that focuses on teaching coping skills to manage emotional distress and improve interpersonal relationships.

Validation

The acknowledgment and acceptance of another person's feelings, thoughts, or experiences as valid and understandable.

Client Agreements

Contracts or agreements outlining the expectations, roles, and responsibilities of both therapist and client in the therapeutic process.

DBT Counselors

Trained professionals who specialize in Dialectical Behavior Therapy, a type of cognitive-behavioral therapy that emphasizes the psychosocial aspects of treatment, especially for managing emotions and improving relationships.