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An American put option on a non-dividend paying stock has an exercise price of $43 and 4 months to expiration. The price of the underlying
An American put option on a non-dividend paying stock has an exercise price of $43 and 4 months to expiration. The price of the underlying stock is $36.81 and the risk free rate is 3.4% p.a. What is the critical value of the time value of the option?
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The critical value of the time value of the option can be calculated using the putcall parity formul...
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
