Put Option

Related BrainMass Solutions

• Developing econometric models for macroeconomic variables

  The put option becomes less valuable as the stock price increases from the strike price and more valuable when the strike price increase for that put option.

• Variables Affecting Option Price

  moves up for call option and stock price moves down for put option).

• European-style contracts

  The difference in market prices between the call option and put option will be: Thus for your question, if the stock referred to is a non-dividend-paying stock, the $2.45 difference in market prices between the call option and put option can only

• Put versus call option prices

  81239 Put versus call option prices OK, please correct me if I am wrong, but a put option is when your stock is sold automatically when the price drops below a certain level. a call is the option to purchase stock at a given price.

• Black and Scholes model

  Put option: delta= -0.8413 change in stock price= $3.00 Therefore, change in the price of the put option= -$2.52 =-0.8413 x $3.

• Options

  127447 Derivatives: Call option, Put option, Put-call parity P15-16. Explain the following paradox. A put option is a highly volatile security.

• Put-Call Parity: What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

  134988 Put-Call Parity: What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? The current price of a stock is $33, and the annual risk-free rate is 6%.

• Derivatives and Forward Markets

  on selling the put option.

• What is the arbitrage opportunity with this European call option and put option?

  208949 What is the arbitrage opportunity with this European call option and put option? AD 9: A European call option and put option on a stock both have a strike price of $30 and an expiration date in six months. Both sell for $5.