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AB Flex Inc

question 35

Essay

AB Flex Inc.stock is currently trading at $38.The time left until expiration of a call and put trading on AB Flex Inc.'s stock is 6 months and the strike price is $45.If the call is currently trading at $1.96 and the Treasury bill rate is 10 percent per year,what price should the put sell for?


Definitions:

Tender

An offer to perform an obligation or supply goods at a fixed price.

Condition Subsequent

A condition in a contract that, if it occurs, terminates an already established right or obligation.

Tender

refers to the offer of payment of money or the performance of an obligation in order to discharge a debt or fulfill a contract.

Offering

The process or act of presenting something for acceptance, consideration, or use, such as a financial instrument or a proposal.

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