Corpfin Mod 20: Homework student comments


Corpfin Mod 20: Homework student comments

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NEAS
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[Below are student comments on a similar homework assignment used in past years.]


Edited 8 Months Ago by NEAS
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D
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1. you stated call value =-3 , this is nonsense.
A call option is an OPTION. Meaning that you need to pay extra to get this feature. It can't be <0.

c + pv(k) = p+ S

we are given c =5, S=77, K=80, then pv(K) = 80/1.02
=> value of put = c + pv(K) - S

[NEAS: Yes]


 
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