The Arbitrage-Free Price of a Put Option Is

question 23

Multiple Choice

The arbitrage-free price of a put option is:

• A) $2.00
• B) $6.45
• C) $8.41
• D) $15.03
• E) None of these answers are correct..

---

Definitions:

European Common Market

The European Common Market, also known as the European Single Market, is an integrated territory across the European Union that allows for the free movement of goods, services, capital, and people.

Hourly Wages

The rate of payment to employees for one hour of work.

Fringe Benefits

Additional benefits offered to employees beyond their normal wages or salaries, such as health insurance, paid vacation, and retirement plans.

Mexico

A country in North America, known for its rich cultural heritage, diverse landscapes, and significant contributions to world cuisine, art, and music.