
Ultimate access to all questions.
A trader with expertise in derivatives is determining the upper limit of prices for various options on a particular stock. The current market price of the stock is USD 100.00, and the annual continuously compounded risk-free interest rate is 12%. Given this information, what are the maximum possible prices for the following 3-month options, all with a strike price of USD 90.00: European call option, American call option, European put option, and American put option?
A
USD 97.04; USD 97.04; USD 87.34; USD 87.34
B
USD 97.04; USD 100.00; USD 90.00; USD 90.00
C
USD 100.00; USD 100.00; USD 87.34; USD 90.00
D
USD 100.00; USD 100.00; USD 90.00; USD 90.00