LeetQuiz Logo
About•Privacy Policy•contact@leetquiz.com
RedditX
© 2025 LeetQuiz All rights reserved.
Financial Risk Manager Part 1

Financial Risk Manager Part 1

Get started today

Ultimate access to all questions.


Comments

Loading comments...

Consider an American-style call option and an American-style put option, each with 3 months to maturity, written on a non-dividend-paying stock currently priced at USD 40. The strike price for both options is USD 35 and the risk-free rate is 1.5%. What are the lower and upper bounds on the difference between the prices of the call and put options?

ScenarioLower Bound (USD)Upper Bound (USD)
A0.1334.87
B5.005.13
C5.1340.00
D34.8740.00

Exam-Like



Powered ByGPT-5