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7. The stock price is currently $167.00. You have $1000 to invest and you expect the stock price to fall to $162 in early September.
7. The stock price is currently $167.00. You have $1000 to invest and you expect the stock price to fall to $162 in early September. Which option should you invest in? Expiration Date (T) Strike Price (x) Call Price Put Price Sep 2011 $160 $9.15 $2.62 Sep 2011 $165 $5.80 $4.10 Sep 2011 $170 $3.00 $6.20 (a) Any one of the call options (b) Put option with strike price $160 (c) Put option with strike price $165 (d) Put option with strike price $170* (e) None of the above
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