(Early exercising American put) You are trying to decide whether to early exercise a put option you...

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(Early exercising American put) You are trying to decide whether to early exercise a put option you hold that expires in 6 months. The put’s exercise price is X = $50 and the interest rate is r = 5%. The underlying asset price is $20.

In which case you are sure better off exercising the option?

a. S = $20

b. S = $3

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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Question Posted: Jun 10, 2024 02:01 AM

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(Early exercising American put) You are trying to decide whether to early exercise a put option you...

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Principles Of Finance Wtih Excel

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