Question: We consider the US put price to exercise $ 50 and expiring in one year, written on ZZR stock. ZZR does not pay dividends and
We consider the US put price to exercise $ 50 and expiring in one year, written on ZZR stock. ZZR does not pay dividends and is traded at $ 13 in the market. Knowing that the interest rate is 10%, and that it is optimal to exercise this option early:a) What is the price of a put with the same characteristics but a strike price of $ 55?
Please somebody help me to answer this financial question it's due in 3 hours.
thank you so much
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