Answer: $3.91
Explanation:
The following information can be gotten from the question:
S = Current stock price = $33
C = Call Price = $2.25
K = Exercise Price = $35
e = 2.71
Rf = Risk free rate = 4% = 0.04
T = Time = = 90 days = 90/365
Put Price will now be calculated as:
= C - S + K × e^(-rt)
= 2.25 - 33 + 35 × 2.71^(-0.04 × 90/365)
= $3.91
