Stock ABC pays no dividends. The current price of an American call on the stock at a
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Stock ABC pays no dividends. The current price of an American call on the stock at a strike of 41 is $4. The current stock price is $40. Compute the time value of the European put option if it is trading at a price of $3.
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Since there are no dividends the price C A of the American call is equal to that of its European c...View the full answer
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