Question: question 4 is based on the info below; read all and solve asap! thanks Part 1 OPTTON PRICING PRINCIPL.AS The following quotes were for the

question 4 is based on the info below; read all and solve asap! thanks

asap! thanks Part 1 OPTTON PRICING PRINCIPL.AS The following quotes were for

Part 1 OPTTON PRICING PRINCIPL.AS The following quotes were for the IBM American options on June 1 of a given year. Use this information to answer questions 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. 4. What is the time value of the June 115 pe:? a. 0 b. 1.00 c. 1.75 d. 2.00 e. None of the above

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