What is the price if the option is european - what is the


Price an IBM put option with a strike price of $100, using the parameters of the example in the text: t = 0.1333, rF = 1.77%, σ = 30%, S0 = $80.50.

(a) What is the price if the option is European?

(b) What is the price if the option is American? Would you continue holding onto it.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the price if the option is european - what is the
Reference No:- TGS01647340

Expected delivery within 24 Hours