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All you know is that the spot price for Tesla at $580 per share. You do not know the forward rates for any period. Is

All you know is that the spot price for Tesla at $580 per share. You do not know the forward rates for any period.

Is a Call on Tesla stock, Strike= $590 per share Expiring in 3 months much more expensive than

a call with a strike of $600 expiring in 2 years? (Hint: can you price an option without the forward price?)

A.

Yes because $590 is closer to being ATM

B.

No because $600 is a higher number than $590

C.

Not enough data to determine that. At a minimum you'd need to know the forward rate for each of those periods

D.

They are exactly the same price

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