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Posted on Aug 10, 2024

The stock price today is S 0 = $ 1 0 0 and a call option with strike price K = $ 1 1 0

The stock price today is S $0 =$ $ $100$ and a call option with strike price K $=$ $ $110$ and maturity T $= 1$ year has a price C $0 =$ $ $10 .$ The interest rate on the bank account is $10 %$ per year. What is the minimum price ST at maturity, for which you prefer to buy the share today rather than buy the call option today?

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