The current stock price is 60. The price of a 6-month 65-strike European call has a price
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The current stock price is 60. The price of a 6-month 65-strike European call has a price of 5.
Consider the following 6-month European barrier options:
(1) Down-and-in call option with a barrier of 58 and a strike of 65
(2) Down-and-out call option with a barrier of 58 and a strike of 65
(3) Up-and-in call option with a barrier of 62 and a strike of 65
(4) Up-and-out call option with a barrier of 62 and a strike of 65 Which of the following pairs contains an option with a price of 5 and an option with zero price?
(A) (1) and (2)
(B) (1) and (3)
(C) (2) and (3)
(D) (2) and (4)
(E) (3) and (4)
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