Question
An American-style put option with eight months to maturity has a strike price of R40. The underlying stock now sells for R48. The put premium
An American-style put option with eight months to maturity has a strike price of R40. The underlying stock now sells for R48. The put premium is R10. What will be the value of a call option for no arbitrage opportunity to exist? The interest rate is 4%.
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
