Question

The 3-month maturity put option price is $6 with a strike price of $60 on the asset that iscurrently trading at $55. If the annual risk-free rate is 8%, what is the price of a 3-monthmaturity call option with a strike price of $60 on the same asset? If the investor writes 3-months call option and the future spot price of the asset is $65, what is the net profit/lossto the investor.Calculate the price of the call option and the net profit/loss to the investor.(A) The price of the call option is $2.18 and the net loss to the investor is $2.82.(B) The price of the call option is $6.00 and the net profit to the investor is $1.00.(C) The price of the call option is $4.82 and the net loss to the investor is $4.82.(D) The price of the call option is $5.00 and the net profit to the investor is $0.00Answerabcd​

Answer 1

Answer:

Sloved answer:- the answer is...

Explanation:

Put Option Price- 6

Strike Price - $60

currently Trading = $55

Annual Risk Rate- 8%

Given,

strike price -$60

time-3months

Future Spot Price- $165