Answer:
The price of the put option will be $1.80
Explanation:
For finding the price of the put option given the price on the call option for the same underlying asset with the same strike price and price is given , we apply the Black-Scholes model of put-call parity to solve the price of the put option.
The put-call parity formular: p = K x e^(-rT) + c - St
where p = price of put of option
K = the strike price = $20
r = Applied Interest rate = 4%
T = time to maturity denominated in year = 3/12 = 0.25
c= call option price
St = spot price of underlying asset = $19
Thus p = 20 x e^(-0.04 x 0.25) + 1 - 19 = $1.80
