Question
The stock of Netflix (Ticker: NFLX) has a 3-month forward price of $492/share and pays no dividend. The continuously-compounded risk-free rate is 1.5% per year.
The stock of Netflix (Ticker: NFLX) has a 3-month forward price of $492/share and pays no dividend. The continuously-compounded risk-free rate is 1.5% per year. You are told that a put option on NFLX expiring in 3 months is priced at $12. For what range of K would there be an obvious arbitrage opportunity?
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Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Kristin L. Reiter, Paula H. Song
7th Edition
1640551867, 9781640551862
