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What is the maximum price

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Reference no: EM133056079

Consider the US put with a strike price of $ 50 and expiring in one year, written on ZZR stock. ZZR does not pay dividends and is traded at $ 13 in the market. Knowing that the interest rate is 10%, and that it is optimal to exercise this option in advance:

a) What is the put Price with the same characteristics but the strike price of $ 55?

b) What is the maximum price of the $ 50 strike call price?

Reference no: EM133056079

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