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4. An American call option on a non-dividend paying stock has exercise price 120 p, expiry date in 6 months time and costs 13 p.
4. An American call option on a non-dividend paying stock has exercise price 120 p, expiry date in 6 months time and costs 13 p. The current stock price is 126 p and the current risk-free interest rate is 6.5% pa. What can you say about the prices of a European call option, a European put option and an American put option on this stock with the same exercise price and expiry date
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