The table below contains the current prices for calls and puts with various strike prices and...
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The table below contains the current prices for calls and puts with various strike prices and a stock currently priced at $129. Todays Date 2/20/2019 Current Stock Price: $129 Option expiration 5/20/2019 (Assume T = .25) 3 month risk free rate: 3.00%. (quoted on an annualized basis) 1. Calculate each option's Intrinsic Value, Time Value, upper and lower bounds. (For this part assume the options are American) IV TV upper bound (In $'s) lower bound (in $'s). $125 Strike Call $125 Strike Put $130 Strike Call $130 Strike Put $135 Strike Call $135 Strike Put The table below contains the current prices for calls and puts with various strike prices and a stock currently priced at $129. Todays Date 2/20/2019 Current Stock Price: $129 Option expiration 5/20/2019 (Assume T = .25) 3 month risk free rate: 3.00%. (quoted on an annualized basis) 1. Calculate each option's Intrinsic Value, Time Value, upper and lower bounds. (For this part assume the options are American) IV TV upper bound (In $'s) lower bound (in $'s). $125 Strike Call $125 Strike Put $130 Strike Call $130 Strike Put $135 Strike Call $135 Strike Put
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To calculate the intrinsic value of an option we shall compare the strike price with the current sto... View the full answer
Related Book For
Introduction To Derivatives And Risk Management
ISBN: 9781305104969
10th Edition
Authors: Don M. Chance, Robert Brooks
Posted Date:
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