Explain whether the options are correctly priced and why and what transactions you might undertake if the corresponding call and put are mispriced Spot price Strike price Time to maturity in years continuously compunded interest rate Call Put 190 200 0 25 0 04 9 9 19 9

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Explain whether the options are correctly priced and why and what transactions you might undertake if the corresponding call and put are mispriced. Spot

Explain whether the options are correctly priced and why and what transactions you might undertake if the corresponding call and put are mispriced.

Spot price	Strike price	Time to maturity in years	continuously compunded interest rate	Call	Put
190	200	0.25	0.04	9.9	19.9

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