Explore BrainMass
Share

Determining Prices of Call and Put Options

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

A stock has a spot price of $35. Its May options are about to expire. One of its puts is worth $5 and one of its calls is worth $5. The exercise price of the put must be ___A__ and the exercise price of the call must be ___B__. (please show work for A & B)

© BrainMass Inc. brainmass.com March 22, 2019, 2:09 am ad1c9bdddf
https://brainmass.com/business/options/determining-prices-of-call-and-put-options-565353

Solution Summary

This solution determines the steps to determine the exercise prices of call and put options in the given case.

$2.19