Compute the price of an american call option with strike


1. Compute the price of an American call option with strike K=110 and maturity T=.25 years.

2. Is it ever optimal to early exercise the put option of Question 2?

3. If your answer to Question 3 is "Yes", when is the earliest period at which it might be optimal to early exercise? (If your answer to Question 3 is "No", then you should submit an answer of 15 since exercising after 15 periods is not an early exercise.)

4. Do the call and put option prices of Questions 1 and 2 satisfy put-call parity? Yes or No

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Financial Management: Compute the price of an american call option with strike
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