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The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated.
The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. The stock price was 113.25. The risk-free rates were 7.30 percent (November), 7.50 percent (December) and 7.62 percent (January). The times to expiration were 0.0384 (November), 0.1342 (December), and 0.211 (January). Assume no dividends unless indicated. What is the intrinsic value of the December 115 put? What is the intrinsic value of the November 115 call? What is the time value of the December 105 put? What is the time value of the November 110 call? What is the European lower bound of the December 105 call
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