Question
4.What is the lower pricing bound for a European call option with a strike price of $80 and one year until expiration?The price of the
4.What is the lower pricing bound for a European call option with a strike price of $80 and one year until expiration?The price of the underlying asset is $90.The one-year interest rate is 5% per annum.Use continuous compounding of interest for the calculation.
____
A)$5.90
B)$10.00
C)$13.90
D)$14.61
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
