The price of an American call on a non-dividend paying stock is $2. The stock price is $15.50, the strike price is $15,

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The Price Of An American Call On A Non Dividend Paying Stock Is 2 The Stock Price Is 15 50 The Strike Price Is 15 1 (45.87 KiB) Viewed 51 times

The price of an American call on a non-dividend paying stock is $2. The stock price is $15.50, the strike price is $15, the expiration date is in 6 months, and the risk free interest rate is 4% continuously compounded. Which of the following is correct, regarding the option premium of an American put on the stock with a strike price of $15 and an expiration date in 6 months ? a. The lower bound for the price of the American put is O and the upper bound is $1.50 Ob. The upper bound for the price of the American put is $14.70 and the lower bound is $0 C. The lower bound for the price of the American put is $1.20 and the upper bound is $1.50