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The stock price of Facebook is $28 and the strike price of a put option with 4 month maturity on a non-dividend-paying stock is $25.
The stock price of Facebook is $28 and the strike price of a put option with 4 month maturity on a non-dividend-paying stock is $25. The risk-free interest rate is 8% per annum. With this information, the upper bound for the price of the call option with same strike price and expiration date is Ol. Ct = 25 Oll. Ct = 28 OIII. Ct = 20.3074
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