Question
You are given the following option prices on the stock of The YETI Corporation (YETI). They are makers of outdoor lifestyle products such as coolers,
You are given the following option prices on the stock of The YETI Corporation (YETI).
They are makers of outdoor lifestyle products such as coolers, ice chests, and vacuum-insulated
stainless-steel drinkware. Their new product line is for these times of stay-at-home social
distancing. It is a Stay-In-Place-Personal-Yeti. They are calling it the SIPPY cup.
You are given the following options on YETI. The current price for YETI stock is $61.00.
The risk-free interest rate is 4.00% compounded continuously. Determine the values for 'P' that
would not violate any of the rules of arbitrage free option pricing. Show all work.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
