Assume an interest rate of 4 if a one-year european put


Suppose the S&P 500 is at 900, and it will pay a dividend of $34at the end of the year. Assume an interest rate of 4%. If a one-year European put option has a negative time value, what is the lowest possible strike price it could have?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Assume an interest rate of 4 if a one-year european put
Reference No:- TGS02577451

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)