Question
1.An asset is trading for $45. Three month American 40 puts are selling for $3. The risk free rate is 10% per annum. What are
1.An asset is trading for $45. Three month American 40 puts are selling for $3. The risk free rate is 10% per annum. What are the boundaries of an American 40 call on the same asset with the same expiration date as the put to avoid arbitrage opportunities?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
