Question
A stock price (which pays no dividends) is $98 and the strike price of a 3-month European put option on the stock is $102. The
A stock price (which pays no dividends) is $98 and the strike price of a 3-month European put option on the stock is $102. The risk-free rate is 8% per annum with quarterly compounding. If there are no arbitrage opportunities, the lower bound for the option price is $__________.
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
