Hello!!! I am having serious trouble with this...can someone tell me how I can solve these two problems on EXCEL???
1) A stock currently sells for $17. A 9-month call option with a strike price of $15 has a premium of $4.79, and a 9-month put with the same stricke price has a premium of $2. 89. Assume a 4% continuously compounded risk-free rate. What is the present value of dividends payable over the next 9 months?
2) Suppose the exchange rate is 0.95dollar/euro, the euro-denom continuously compounded interest rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price of a 1-year 0.93-strike European call on the euro is $0.0571. What is the price of a 0.93-strike European put?
1) A stock currently sells for $17. A 9-month call option with a strike price of $15 has a premium of $4.79, and a 9-month put with the same stricke price has a premium of $2. 89. Assume a 4% continuously compounded risk-free rate. What is the present value of dividends payable over the next 9 months?
2) Suppose the exchange rate is 0.95dollar/euro, the euro-denom continuously compounded interest rate is 4%, the dollar-denominated continuously compounded interest rate is 6%, and the price of a 1-year 0.93-strike European call on the euro is $0.0571. What is the price of a 0.93-strike European put?