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Dafna11 [192]
3 years ago
15

A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $2. A put option on Ju

piter stock with an exercise price of $80 and one-year expiration is selling at $.5. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be?

Business
1 answer:
creativ13 [48]3 years ago
7 0

Answer:

$70.85

Explanation:

Please see attachment.

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