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What is the maximum possible price of a call option

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Reference no: EM131661466

Question - Suppose Amazon stock is trading for $ 530 per share, and Amazon pays no dividends.

a. What is the maximum possible price of a call option on Amazon?

b. What is the maximum possible price of a put option on Amazon with a strike price of $ 585?

c. What is the minimum possible value of a call option on Amazon stock with a strike price of $ 505?

d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $ 600?

Reference no: EM131661466

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