Question
What is the lower bound of an American call option with 8 months to expiry and a strike price of 8. The underlying stock is
What is the lower bound of an American call option with 8 months to expiry and a strike price of 8. The underlying stock is currently trading at 14.8, and the risk-free rate is 10%.
Do not enter the dollar sign "$". Your answer should have at least two decimal places.
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
