Question
Assume zero interest rates and no dividends. The 1-year TSLA call option at K=400 is priced at $140, and the 1-year TSLA put option at
Assume zero interest rates and no dividends. The 1-year TSLA call option at K=400 is priced at $140, and the 1-year TSLA put option at the same strike is priced at $88. (i) Based on put-call parity, infer the 1-year forward price on TSLA. (ii) What is the present value of a 1-year forward on TSLA with delivery price of 400?(value for one share, not 100 shares) (iii) What's the intrinsic valueand time valueof the call option? (iv) What is the intrinsic valueand time valueof the put option? (v) which option is in-the-money?(answer ""call"" or ""put""). Give all numeric answers in integers
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