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For questions 1 to 4 consider the following information: You have infor...
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For questions 1 to 4 consider the following information:
You have information regarding several financial options for stock (all with
|
Strike (€)
|
Price (€)
|
European Call
|
20
|
5,2
|
European Put
|
20
|
?
|
European Call
|
25
|
3,2
|
The current stock price of stock is €18. The annual continuously compounded risk-free rate is 2,49%.
Assume only for this question stock, with a strike price of €25. Assume also that 4 months from now stock is worth €28,4. Compute your profit from this position.
(Insert your answer in
monetary units. For example, if your answer is €231.187, please insert 231.187)