1)a)
Subject:FinancePrice: Bought3
1)a). State the Put-Call Parity.
b). Suppose the interest rate is r=.05 per year compounded continuously and the current value of an asset, S, is $100. Suppose P100 costs $5 with expiration date 1 year from now. How much is C100?
c). Suppose C100 costs $6 with expiration date 1 year from now. How much is P100?
d), What is the lower bound for C100? Compute C105−P105,15months from now.
