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Author Question: Suppose you are looking to exploit opportunities in the options markets. The price of a call option ...  (Read 8 times)

frankwu

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Suppose you are looking to exploit opportunities in the options markets. The price of a call option ...
« on: Jul 9, 2019 »
Suppose you are looking to exploit opportunities in the options markets.  The price of a call option on Apple computers with a maturity of one year and strike price $150 is $15, and the price of the stock is $140.  What should the price of a put option be to preclude profitable opportunities? The risk-free rate of interest is 5%.
◦ $19.63
◦ $17.86
◦ $25.00
◦ $21.45

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Marked as best answer by frankwu on Jul 9, 2019

ririgirl15

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Suppose you are looking to exploit opportunities in the options markets. The price of a call option ...
« Reply #1 on: Jul 9, 2019 »
$17.86
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