The Following Quotes Were Observed for Options on a Given

question 31

Multiple Choice

The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.

The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December) and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated.
-From American put-call parity,what are the minimum and maximum values that the sum of the stock price and December 110 put price can be?

• A)101.81 and 102.87
• B)2.50 and 113.25
• C)116.038 and 117.10
• D)7.125 and 110
• E)none of the above

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Definitions:

Schizoid

Pertaining to a personality disorder characterized by a long-term pattern of detachment from social relationships and a limited range of emotional expression.

Antisocial Personality Disorder

A mental disorder where a person consistently shows no regard for right and wrong and ignores the rights and feelings of others.

Punishment

The imposition of an undesirable or unpleasant outcome upon an individual or group, with the aim of decreasing or preventing a specific behavior.

Antisocial Personality Disorder

A mental health disorder characterized by a pervasive pattern of disregard for, and violation of, the rights of others.