financial management
posted by katu .
The current price of a stock is $33, and the annual riskfree rate is 6%. A call option with a strike price of $32 and with 1 year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

V ¨C P + X exp(rRF t) = $6.56  $33 + $32 e0.06(1) = $6.56  $33 + $30.136 = $3.696 ¡Ö $3.70.
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