Question
An American call option on Ruth stock with a strike price of $120 and nine-month expiration is selling at $35. Ruth pays no dividends and
An American call option on Ruth stock with a strike price of $120 and nine-month expiration is selling at $35. Ruth pays no dividends and its stock price is currently $140. If the risk-free rate is 3.5%, what is the upper bound on an American put option on Ruth stock with a strike price of $120 and nine-month expiration?
| A. | $12 | |
| B. | $23 | |
| C. | $20 | |
| D. | $15 |
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
