Solved

The Following Quotes Were Observed for Options on a Given

Question 31

Multiple Choice

The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.
The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.   The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December)  and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated. -From American put-call parity,what are the minimum and maximum values that the sum of the stock price and December 110 put price can be? A) 101.81 and 102.87 B) 2.50 and 113.25 C) 116.038 and 117.10 D) 7.125 and 110 E) none of the above
The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December) and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated.
-From American put-call parity,what are the minimum and maximum values that the sum of the stock price and December 110 put price can be?


A) 101.81 and 102.87
B) 2.50 and 113.25
C) 116.038 and 117.10
D) 7.125 and 110
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions