F ac t ors A f f ecting Option P r ices Suppose Amazon stock is trading for $70 per share, and Amazon pays no dividends. a. What is the maximum possible price of a call option on Amazon? b. What is...

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F ac t ors A f f ecting Option P r ices

Suppose Amazon stock is trading for $70 per share, and Amazon pays no dividends.

a. What is the maximum possible price of a call option on Amazon?

b. What is the maximum possible price of a put option on Amazon with a strike price of $100?

c. What is the minimum possible value of a call option on Amazon stock with a strike price of $50?

d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $100?

Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021

109 Votes

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