For Problems 2, 3, and 4 below, use the following Nvidia option chain (NVDA = $875):...
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For Problems 2, 3, and 4 below, use the following Nvidia option chain (NVDA = $875): Strike Price 1-month 3. (25 Points) Using the NVDA options in the table above, create a 870 - 880 box spread. Use this information to compute the implied continuously compounded annual risk-free rate. Note: the option expires in 1-month! 1-month Call Option Put Option Premium Premium 800 101.29 24.00 810 94.80 27.57 820 90.31 30.43 830 84.11 34.85 840 78.00 39.43 850 73.00 43.80 860 67.85 50.05 870 63.96 56.61 880 59.00 61.61 890 55.40 67.05 900 51.00 71.40 910 48.86 73.90 920 44.00 79.80 930 40.95 88.25 940 38.85 94.00 950 36.05 100.55 For Problems 2, 3, and 4 below, use the following Nvidia option chain (NVDA = $875): Strike Price 1-month 3. (25 Points) Using the NVDA options in the table above, create a 870 - 880 box spread. Use this information to compute the implied continuously compounded annual risk-free rate. Note: the option expires in 1-month! 1-month Call Option Put Option Premium Premium 800 101.29 24.00 810 94.80 27.57 820 90.31 30.43 830 84.11 34.85 840 78.00 39.43 850 73.00 43.80 860 67.85 50.05 870 63.96 56.61 880 59.00 61.61 890 55.40 67.05 900 51.00 71.40 910 48.86 73.90 920 44.00 79.80 930 40.95 88.25 940 38.85 94.00 950 36.05 100.55
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