Striking price and expiration date


Problem:

Using DerviaGem:

The price of an American call on a non-dividend-paying stock is $4. The stock price is $31, the strike price is $30, and the expiration date is in three months. The risk-free interest rate is 8%. Derive upper and lower bounds for the price of an American put on the same stock with the same strike price and expiration date.

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Finance Basics: Striking price and expiration date
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