Question: question 2 and 3 are based on the info below; read all and solve all thanks! Pan I OPTION PRICING PRINCIPLES The following quotes were

question 2 and 3 are based on the info below; read all and solve all thanks!

and solve all thanks! Pan I OPTION PRICING PRINCIPLES The following quotes

Pan I OPTION PRICING PRINCIPLES The following quotes were for the IBM Ameriean options on June 1 of is given year: Use this information to answer questiona 14. The risk-free rates are 7.30% (June) and 7.50% (July). The times to expiration are 0384 (June) and .1342(July). Assume no dividends. 2. What is the time value of the June 115 call? a. 0 b. 1.50 c. 1.75 d. 2.75 e. None of the above 3. What is the time value of the July 105 put? a. 0 b. 1.25 c. 7.25 d. 8.25 e. None of the above

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