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Posted on Sep 20, 2024

4. Use the supplemented data sheet to derive the upper and lower- boundary for call and put striking at $120, expiring on Feb 2016. Is

4. Use the supplemented data sheet to derive the upper and lower- boundary for call and put striking at $120, expiring on Feb 2016. Is the real price within the boundaries? (two boundaries for call, and two boundaries for put) image text in transcribed

3 Month LIBOR 6.00000% 480000% 360000% interest Rate 2.40000% 120000% 0.00000% 1/2005/2006 1/2007 1/2009 1/2009 1/2010 2011 2012 2013 2014 2015 7/2005 2006 2007 7/2008 7/2009 2010 2011 2012 2013 2014 2015 2015 MoneyCafe.com 3 Month LIBOR Month Jan Fab Mar Apr May Jun 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2.74390% 4.67950% 5.38010% 4.70250% 1.425.00% 0.25063% 0.300819 0.58100% 0.30800% 0.24610% 0.26580% 2.91010% 4.81920% 5.35980% 311188% 1.18438% 0.24906% 0.30438% 0.54235% 0.29800% 0.23080% 0.28310% 3.09950% 4.90980% 5.34790% 3.05750% 1.25438% 0.25169% 0.30990% 0.48425% 0.28710% 0.23565% 0.26185% 3.21070% 5.14790% 5.35680% 268813% 1.19188% 0.29150% 0.30300% 0.48815% 0.28200% 0.23000% 0.27075% 3.32920% 523350% 5.35050% 286000% 1.01625% 0.34856% 0.27300% 0.48585% 0.27310% 0.22335% 0.27875% 3.50450% 5.50050% 5.35930% 2.68063% 0.65625% 0.53625% 0.25208% 0.46885% 0.27525% 0.22740% 0.28375% 3.69480% 5.48890% 5.36000% 278313% 0.59600% 0.63394% 0.24575% 0.48060% 0.27310% 0.23070% 0.28320% 3.87200% 5.40140% 5.35866% 279125% 0.47938% 0.45375% 0.25650% 0.44200% 0.26580% 0.23910% 0.30860% 4.00550% 5.37250% 5.62125% 281063% 0.34750% 0.29963% 0.32722% 0.41605% 0.25950% 0.23300% 0.32900% 4.25230% 537290% 5.22875% 4052509 0.28688% 0.29000% 0.37433% 0.35850% 0.24885% 0.23510% 0.32500% 4.41390% 5.36850% 4.89075% 3.00625% 0.28063% 0.20594% 0.42944% 0.31275% 0.24200% 0.23210% 0.33410% 4.52980% 536010% 5.13125% 221688% 0.25656% 0.300318 0.52889% 0.31050% 0.23910% 0.23360% Jul Aug Sep Oct Now Dec 3 Month LIBOR 6.00000% 480000% 360000% interest Rate 2.40000% 120000% 0.00000% 1/2005/2006 1/2007 1/2009 1/2009 1/2010 2011 2012 2013 2014 2015 7/2005 2006 2007 7/2008 7/2009 2010 2011 2012 2013 2014 2015 2015 MoneyCafe.com 3 Month LIBOR Month Jan Fab Mar Apr May Jun 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2.74390% 4.67950% 5.38010% 4.70250% 1.425.00% 0.25063% 0.300819 0.58100% 0.30800% 0.24610% 0.26580% 2.91010% 4.81920% 5.35980% 311188% 1.18438% 0.24906% 0.30438% 0.54235% 0.29800% 0.23080% 0.28310% 3.09950% 4.90980% 5.34790% 3.05750% 1.25438% 0.25169% 0.30990% 0.48425% 0.28710% 0.23565% 0.26185% 3.21070% 5.14790% 5.35680% 268813% 1.19188% 0.29150% 0.30300% 0.48815% 0.28200% 0.23000% 0.27075% 3.32920% 523350% 5.35050% 286000% 1.01625% 0.34856% 0.27300% 0.48585% 0.27310% 0.22335% 0.27875% 3.50450% 5.50050% 5.35930% 2.68063% 0.65625% 0.53625% 0.25208% 0.46885% 0.27525% 0.22740% 0.28375% 3.69480% 5.48890% 5.36000% 278313% 0.59600% 0.63394% 0.24575% 0.48060% 0.27310% 0.23070% 0.28320% 3.87200% 5.40140% 5.35866% 279125% 0.47938% 0.45375% 0.25650% 0.44200% 0.26580% 0.23910% 0.30860% 4.00550% 5.37250% 5.62125% 281063% 0.34750% 0.29963% 0.32722% 0.41605% 0.25950% 0.23300% 0.32900% 4.25230% 537290% 5.22875% 4052509 0.28688% 0.29000% 0.37433% 0.35850% 0.24885% 0.23510% 0.32500% 4.41390% 5.36850% 4.89075% 3.00625% 0.28063% 0.20594% 0.42944% 0.31275% 0.24200% 0.23210% 0.33410% 4.52980% 536010% 5.13125% 221688% 0.25656% 0.300318 0.52889% 0.31050% 0.23910% 0.23360% Jul Aug Sep Oct Now Dec