Suppose Amazon stock is trading for $780 per share, and Amazon pays no dividends. a. What is

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Suppose Amazon stock is trading for $780 per share, and Amazon pays no dividends.

a. What is the maximum possible price of a call option on Amazon?

b. What is the maximum possible price of a put option on Amazon with a strike price of $940?

c. What is the minimum possible value of a call option on Amazon stock with a strike price of $600?

d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $910?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:00 AM

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Suppose Amazon stock is trading for $780 per share, and Amazon pays no dividends. a. What is

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