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AMZN stock is trading for $103 -There is a call option on the stock with 3 months (25% of the yr) to expiration w/ a
AMZN stock is trading for $103
-There is a call option on the stock with 3 months (25% of the yr) to expiration w/ a strike price of $105
The risk free rate is 8%
1. Will they options market price be valued at less than $3? why? Would it be in the money, out the money, or at the money?
2. If the call option is trading for $7.00, then what should be the price of a put option with the same strike price and maturity?
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