Question
S = $20, X = $50, r = 2%, T = 9 months, and . a. Find the values of the call and put options,
S = $20, X = $50, r = 2%, T = 9 months, and 
.
a. Find the values of the call and put options, their intrinsic values and time premiums.
b. Why does the put option have a negative time premium? Hint: The put option is deep in the money.
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
