In: Finance
Suppose that Big Kahuna Burger (BKB) currently trades for $1100 and the 6-month risk free rate is 2%. Using Put-Call Parity, what is the price of a six-month call option on BKB with a strike price of $1000? A six-month put on BKB with a strike price of $1000 trades for $43.91 and a six-month put on BKB with a strike price of $1100 trades for $87.08.