Question
Today's price of AMZN is $1,900 per share. You are interested in a bear put spread on AMZN with one year until maturity. You ask
Today's price of AMZN is
$1,900 per share. You are interested in a bear put spread on AMZN with one year until maturity. You ask an option dealer to provide quotes on AMZN options with one year until maturity. For a European put option with a strike of
$2000, the dealer quotes you a price of
$323.77. For a European put option with a strike of
$1,800, the dealer quotes you a price of
$210.03. The c.c. risk-free interest rate is zero percent. When does your bear put spread break even on its investment? Input your answer in terms of the stock price in one year (e.g., $1,900). Round your answer to three decimal places.
Today's price of AMZN is $1,900 per share. You are interested in a bear put spread on AMZN with one year until maturity. You ask an option dealer to provide quotes on AMZN options with one year until maturity. For a European put option with a strike of $2000, the dealer quotes you a price of $323.77. For a European put option with a strike of $1,800, the dealer quotes you a price of $210.03. The c.c. risk-free interest rate is zero percent. When does your bear put spread break even on its investment? Input your answer in terms of the stock price in one year (e.g., \$1,900). Round your answer to three decimal places
Today's price of AMZN is
$1,900per share. You are interested in a bear put spread on AMZN with one year until maturity. You ask an option dealer to provide quotes on AMZN options with one year until maturity. For a European put option with a strike of
$2000, the dealer quotes you a price of
$323.77. For a European put option with a strike of
$1,800, the dealer quotes you a price of
$210.03. The c.c. risk-free interest rate is zero percent. When does your bear put spread break even on its investment? Input your answer in terms of the stock price in one year (e.g., $1,900). Round your answer to three decimal places.
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Enron And World Finance A Case Study In Ethics
Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin
1st Edition
1403947635, 978-1403947635
