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HighFlyer Stock currently sells for $48. A one-year call option with strike price of $55 sells...

HighFlyer Stock currently sells for $48. A one-year call option with strike price of $55 sells for $9, and the risk-free interest rate is 6%. What is the price of a one-year put with strike price of $55?

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Answer #1
Price of a one year put with strike price of $55
= Call option selling price - current selling price + (one year strike price/(1+interest rate))
= 9 - 48+(55/1.06)
= $12.89
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