Question
Consider the American put option with a strike price of $ 50 and expiring in one year written on ZZR stock. . ZZR does not
Consider the American put option with a strike price of $ 50 and expiring in one year written on ZZR stock. . ZZR does not pay dividends and is traded at $ 13 in the market. Knowing that the interest rate is 10%, and that it is optimal to exercise this option in advance: a) What is the price of a put with the same characteristics but a strike price of $ 55? b) What is the maximum price of the call with a $ 50 strike price?
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The Management Of Business Finance
Authors: John Freear
1st Edition
0273014315, 978-0273014317
