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Put Options with Strikes of $70,$75,and $85 Have Option Premiums

question 10

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Put options with strikes of $70,$75,and $85 have option premiums of $6.00,$8.50,and $11.00,respectively.Using strike price convexity,which option premium,if any,is not possible?


Definitions:

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and shareholders' equity (Assets = Liabilities + Equity).

Transactions

Any business activity that involves the exchange of goods, services, or money between two or more parties.

Total Assets

The sum of all current and non-current assets owned by a business.

Owner's Equity Statement

A financial document showing the changes in the equity of a business entity over a period, including investments, withdrawals, and net income or loss.

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