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The next 3 problems rely on the table below. The options have the same underlying asset, expire in 1.5 years, they are European, and have
The next 3 problems rely on the table below. The options have the same underlying asset, expire in 1.5 years, they are European, and have strike 100. In addition, the risk free rate is 6%, compounded continuously. Option Price Asset-or-Nothing Call 61.62 Cash-or-Nothing Call 0.4491 Asset-or-Nothing Put 35.38 Cash-or-Nothing Put 0.4649 3.3. Determine the prepaid forward price of the underlying asset.
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