stock-options

Learning objectives: Identify the six factors that affect an option’s price. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Explain put-call parity and apply it to the valuation of European and American stock options, with dividends and...

Learning objectives: Explain put-call parity and apply it to the valuation of European and American stock options. Explain the early exercise features of American call and put options. Questions: 726.1. The price of a dividend-paying stock is $44.00 while the riskfree rate is 3.0%. Consider a...

Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Questions: 725.1...