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    Option Pricing

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    FS, Inc. stock is selling for $28 a share. A 3-month call on FS stock with a strike price of $30 is priced at $1.50. Risk-free assets are currently returning 0.3% per month. What is the price of a 3-month put on GS stock with a strike price of $30?

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    Solution Preview

    We will use the put-call parity to answer this question:
    According to Put ...

    Solution Summary

    The solution goes into a great amount of detail regarding the question being asked on option call price. Step-by-step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.