Question
3. What is the time value of a call option costing $6 with a strike price of $32 and a spot price of $36? 4.
3. What is the time value of a call option costing $6 with a strike price of $32 and a spot price of $36?
4. What is the risk-free arbitrage profit available if a one-year option pair has a strike price of $60, a spot price of $62, a call premium of $5, a put premium of $2, and a risk-free rate of 4%?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
