Question
Two puts have the following characteristics: Put A: T=.5, X=50, s=.30, Option price=$10 Put B: T=.5, X=50, s=.35, Option price=$10; Risk free rate=6%; the underlying
Two puts have the following characteristics: Put A: T=.5, X=50, s=.30, Option price=$10
Put B: T=.5, X=50, s=.35, Option price=$10; Risk free rate=6%; the underlying stocks for each put pay no dividends.
Which put option is written on the stock with the lower price?
- Not enough information.
- Put B.
- No answer text provided.
- Put A.
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
