Consider an American put option on a stock with strike $400 and 2-month maturity. The...
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Finance
Consider an American put option on a stock with strike $400 and 2-month maturity. The current stock price is $200. Suppose the continuously compounded riskfree rate is 10%. Which of the following numbers can be a reasonable price for the put option today?
(A) -$50. (B) $150. (C) $300. (D) $450.
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