Question
Two put options are written on AMZN shares. Both have 6 months before expiry. One put has a strike price of $3500 and the other
Two put options are written on AMZN shares. Both have 6 months before expiry. One put has a strike price of $3500 and the other put has a strike price of $3600. AMZN share price is currently $3800.
Explain why the put with $3500 strike will trade at a lower price than the put with $3600 strike.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
