Suppose the S&P 500 is at 899, and it will pay a dividend of $27 at the

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Suppose the S&P 500 is at 899, and it will pay a dividend of $27 at the end of the year. Suppose also that the interest rate is 3%. If a one-year European put option has a negative time value, what is the lowest possible strike price it could have?

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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 the S&P 500 is at 899, and it will pay a dividend of $27 at the

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Determining the minimum possible strike price Since the put option has a negative time va...View the full answer

Corporate Finance The Core

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