Which Set of Arbitrage-Free Put Prices (In Dollars)is Correct

question 14

Multiple Choice

Which set of arbitrage-free put prices (in dollars) is correct?

• A) p = 2.00,p_U = 0,and p_D = 4.06
• B) p = 8.41,p_U = 2.00,and p_D = 15.03
• C) p =15.03,p_U = 4.06,and p_D = 26.39
• D) p = 8.41,p_U F=0,and p_D = 26.39
• E) None of these answers are correct.

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