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Please mark out the answers. Thank you! (10 points) Assume there is no arbitrage. Consider eight barrier versions of the 21 month IBM European option
Please mark out the answers. Thank you!
(10 points) Assume there is no arbitrage. Consider eight barrier versions of the 21 month IBM European option option with strike price $109.00 and barrier $110.00. These are characterized by "call" versus "put," "down" versus "up," and "out" versus "in." Click on all of the options whose price today must be $0.00. A. call/down/out B. call/down/in C. call/up/out OD. call/up/in OE. put/down/out OF. put/down/in OG. put/up/out OH. put/up/in (10 points) Assume there is no arbitrage. Consider eight barrier versions of the 21 month IBM European option option with strike price $109.00 and barrier $110.00. These are characterized by "call" versus "put," "down" versus "up," and "out" versus "in." Click on all of the options whose price today must be $0.00. A. call/down/out B. call/down/in C. call/up/out OD. call/up/in OE. put/down/out OF. put/down/in OG. put/up/out OH. put/up/inStep by Step Solution
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