Question
October 14, 2020 (11:38 am), the shares of Facebook, Inc (FB) are trading at $273.61. The company does not pay any dividend. American Calls with
October 14, 2020 (11:38 am), the shares of
Facebook, Inc (FB) are trading at $273.61. The company does not pay any dividend.
American Calls with a strike price of $310 and a March 19, 2020 (about 5 months from
now) expiration are trading at $17.75 The appropriate LIBOR is 0.92%. Derive the upper
and lower bound for the price of a corresponding American Put option.
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
