In February Gid Gardner sold a September 55 call on Dane Corporation stock for $4,375 per share and simultaneously bought a September 55 put on the same stock for $6 per share. At the time. Treasury bills coming due in September were priced to yield 12.6%, and Dane stock sold for $53 per share. a. What value would put-call parity suggest was appropriate for the Dane put? b. Dane was expected to make three dividend payments between February and September. Could that account for the discrepancy between your answer to part (a) and the actual price of the put? Why or why not?
https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png 0 0 admin https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png admin2021-11-10 21:57:382021-11-10 21:57:38In February Gid Gardner sold a September 55 call on Dane Corporation stock for $4,375 per share and.