Consider the data for IBM options in Problem 3. Suppose a new American-style put option on IBM

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Consider the data for IBM options in Problem 3.

Suppose a new American-style put option on IBM is issued with a strike price of $130 and an expiration date of December 1st.

a. What is the maximum possible price for this option?

b. What is the minimum possible price for this option?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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