# Cola Company has call options on its common stock traded in the market. The

Cola Company has call options on its common stock traded in the market. The options have an exercise price of $452. Cola Company has call options on its common stock traded in the market. The options have an exercise price of $45 and expire in 156 days. The current price of the Cola stock is $44.375. The risk free rate is 7% per year and the standard deviation of the stock returns is 0.31.

a. What is the value of the call on Cola Company, assuming that it is a European call?

b. What is the value of the put option on Cola Company with the same exercise price and maturity date? (Hint: Use put call parity theorem)

a. What is the value of the call on Cola Company, assuming that it is a European call?

b. What is the value of the put option on Cola Company with the same exercise price and maturity date? (Hint: Use put call parity theorem)

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