2 A stock has market price $45 and pays a $2 dividend quarterly The next dividend is payable one month from now The risk free interest rate is 6 Three month European options with strike price K $50 are considered The put option costs $7 32, What is the cost of the call option 2 A stock has market ...

ANSWER 1 Lack of PutCall Parity for Early Exercise The putcall parity relationship typically holds t ...

2. A stock has market price $45 and pays a $2 dividend quarterly. The next dividend...

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2. A stock has market price $45 and pays a $2 dividend quarterly. The next dividend...

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ANSWER 1 Lack of PutCall Parity for Early Exercise The putcall parity relationship typically holds t... View the full answer

Derivative Pricing

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