Question
Consider American call and put on stock Y. Both the call and the put are 6-month to expiration with strike price of $205. Current stock
Consider American call and put on stock Y. Both the call and the put are 6-month to expiration with strike price of $205. Current stock price is $200; and the stock does not pay any dividend in 6-month. Interest rate is 10%. The call option premium is $8.57.
What is the range of the put option premium, for which the trader has no arbitrage opportunities?
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
