A European PUT option written on one share of Deadwood Lumber Co. stock has the following...

A European PUT option written on one share of Deadwood Lumber Co. stock has the following parametervalues: S = $28, X = $30, r = 5% p.a., = 40% p.a., T = 12 months. Find the premium of this option, rounded to 2 decimals (e.g., 1.15; do NOT include a dollar sign in your answer). NOTE: Use the continuous time version of the Black-Scholes and Put-Call Parity equations

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Premium is 4.7545

jeff jeffy answered 1 year ago

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