subject
Business, 06.05.2020 02:28 luiscer5819

The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months. You do not know whether it will go up or down, however. The current price of the stock is $160 per share, and the price of a 3-month call option at an exercise price of $160 is $6.73.

If the risk-free interest rate is 10% per year, what must be the price of a 3-month put option on P. U.T. T. stock at an exercise price of $160? (The stock pays no dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 12:10
In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.
Answers: 2
question
Business, 22.06.2019 16:50
In terms of the "great wheel of science", statistics are central to the research process (a) only between the hypothesis phase and the observation phase (b) only between the observation phase and the empirical generalization phase (c) only between the theory phase and the hypothesis phase (d) only between the empirical generalization phase and the theory phase
Answers: 1
question
Business, 22.06.2019 20:00
Edna gomez is the founder of the restaurant chain good and green. she ensures that the products in her stores are ethically and responsibly sourced. most products are therefore 100 percent organic and all packaging is manufactured from recycled material. also, her company sources ingredients from farms within 100 miles from her locations. edna's belief is that her restaurants should be able to support the community at large. which of the following terms best describes edna gomez? a. headhunter b. category captain c. social entrepreneur d. trade creditor
Answers: 3
question
Business, 23.06.2019 02:10
Which of the following best describes what production accomplishes? a. efficient use of natural resources. b. a reduction in the size of the labor force. c. an increase in supply that lowers prices. d. value added to resources that already exist.
Answers: 1
You know the right answer?
The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past...
Questions
question
Social Studies, 10.09.2021 18:00
question
Mathematics, 10.09.2021 18:00
question
Mathematics, 10.09.2021 18:00
question
History, 10.09.2021 18:00
question
History, 10.09.2021 18:00
question
Mathematics, 10.09.2021 18:00
Questions on the website: 13722361