Question
We consider the US put price to exercise $ 50 and expiring in a year, written on ZZR stock. ZZR does not pay dividends and
We consider the US put price to exercise $ 50 and expiring in a year, written on ZZR stock. ZZR does not pay dividends and is traded at $ 13 in the market. Knowing that the interest rate is 10%, and that it is optimal to exercise this option in advance: a) What is the price of a put with the same characteristics but a strike price of $ 55? b) What is the maximum price of the $ 50 strike price call?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
