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The following table lists some prices of options on common stocks. The interest rate is 10 percent a year. Can you spot any mispricing? What
The following table lists some prices of options on common stocks. The interest rate is 10 percent a year. Can you spot any mispricing? What could you do to take advantage of it?
| Stock | Time to Exercise (months) | Exercise Price | Stock Price | Put Price | e Call Price |
| Furbish Lousewort | 6 | 100 | 90 | 10.00 | 15.00 |
| Quercus Alba | 6 | 50 | 60 | 2.00 | 10.00 |
| Fagus Sylvatica | 3 | 50 | 50 | 4.60 | 8.00 |
| Fagus Sylvatica | 6 | 50 | 50 | 5.60 | 8.00 |
| Fagus Sylvatica | 12 | 10 | 50 | 0.00 | 40.00 |
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Rockin Your Business Finances
Authors: Chrstine Odle
1st Edition
0999135104, 9780999135105
