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You are exploring options with a strike price of $420 on a stock that is currently trading for $400. The risk-free rate is 3% and
You are exploring options with a strike price of $420 on a stock that is currently trading for $400. The risk-free rate is 3% and the options you are considering are for a 3-month horizon.
For a European Call option, the premium must be at least ___ and no more than ___.
For an American Call option, the premium must be at least ___ and no more than ___.
For a European Put option, the premium must be at least ___ and no more than ___.
For an American Put option, the premium must be at least ____ and no more than____.
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