Question
Put Strike $3. 5 0 Probability Actual Price Put Value Call Value Call Strike $3.00 0. 1 $ 2.0 0.2 $ 3.0 0. 4 $
Put Strike | $3.50 |
| Probability | Actual Price |
| Put Value | Call Value |
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Call Strike | $3.00 |
| 0.1 | $2.0 |
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| 0.2 | $3.0 |
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| 0.4 | $3.1 |
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| 0.2 | $4.9 |
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| 0.1 | $5.0 |
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| Fair Premiums |
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Explain why one of the option premiums is higher than the other
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
