Question
Given the below data on stocks and options. S=$25, K=$22, r=7%, T=1, D=0. calculate a) the upper and lower bounds for a European call upper
Given the below data on stocks and options.
S=$25,
K=$22,
r=7%,
T=1,
D=0.
calculate
a) the upper and lower bounds for a European call
upper bound:
lower bound:
b) the upper and lower bounds for a European put
upper bound:
lower bound:
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
