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i need detail explaination of how to do this homework please. not the answer but detail math explaination on how to get the answer as
i need detail explaination of how to do this homework please. not the answer but detail math explaination on how to get the answer as soon as possible please thank you
Underlying priced at 1000 with MAD of 250. 1) What is the probability of option expiring ITM for a 1200 PUT?
2)What is the average underlying price when PUT expires ITM?
3)What is the average PUT option payment conditional on that the PUT expires in the money?
4)How much should the PUT be priced at today? 5) Out of the price in Q2d, how much of that is intrinsic value and how much is time value?
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