Multiple Choice
The 50-strike call on a stock is trading at $13 and a 60-strike call on the same stock with the same maturity is trading at $4. The minimum price of the 100-strike call is
A) $0
B) $1
C) $2
D) $3
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q9: A stock is trading at $70. A
Q10: The current price of a non-dividend paying
Q11: All else the same, when the interest
Q12: Consider two six-month European calls at
Q13: All else the same, when the interest
Q15: There are three- and six-month European
Q16: Consider three put options at strikes 40,
Q17: Consider two six-month American puts at strikes
Q18: An arbitrage opportunity is any situation in
Q19: There are three- and six-month American