Value of a put option

Related BrainMass Solutions

• Variables Affecting Option Price

  For a call option the exercise price is to be PAID at the exercise of the option. For a put option the exercise price is to be RECEIVED at the exercise of the option.

• 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?

  A call option with an exercise price of $32 and one-year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

• Calculating the value of a put option

  442172 Put-call parity The current price of a stock is $33, and the annual risk-free rate is 6%. A call option with a strike price of $32 and with 1 year until expiration has a current value of $6.56.

• Problems on call and put options.

  Use the Black-Scholes formula to find the value of a call option on the following stock. All else being equal, is a put option on a high beta stock worth more than one on a low beta stock?

• Put versus call option prices

  If you have the amount that a put option would cost you can figure out what a call option would cost by using put call parity, which is given below: Value of Put + stock price = value of call + PV of exercise price risk free rate = 10%/year or 2.5%

• Value of Call Option using Black-Scholes model

  value of the put option.

• Expected Return, Fair Value, Beta of Put Option & Return on Put Option

  125586 Expected Return, Fair Value, Beta of Put Option & Return on Put Option You are concerned that the stock market will decline over the next year, so you are considering buying a one-year put option on the S&P 500 Index.

• Determining Prices of Call and Put Options

  (please show work for A & B) Stock's spot price=$35 Value of Put Option=$5 Value of Call Option=$5 Exercise price of Put Option= Value of Put Option + Spot price=5+35=$40 Exercise price of Call Option= Spot price-Value of Call Option=35-5=$30 This

• Developing econometric models for macroeconomic variables

  Time of Expiration: For put American option, the value of the option increases as the time of expiration of that option increases.

• Call and Put Options

  to put value when the current asset price= present value of strike price Identifies the circumstances under which the price of the call option is equal to the price of the put option.