If a one-year european put option has a negative time value


Suppose the S&P 500 is at 813, and it will pay a dividend of $31 at 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?

The lowest possible strike price is _______________? (Round to the nearest dollar.)

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Financial Management: If a one-year european put option has a negative time value
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