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The price of a European call that expires in 6 months and has a strike price...

The price of a European call that expires in 6 months and has a strike price of $30 is $2. The underlying stock price is $29. The term structure is flat, with all risk-free interests rates being 10%. What is the price of a European put option that expires in 6 months and has a strike price of $30?

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Answer #1

Given,

Strike price = $ 30

Price of European call = $ 2

Stock price = $ 29

Term of option = 6 months or 0.5 years

Risk free interest rate = 10% or 0.10

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