question archive 1)The current stock price is $100, the strike price of American call and put is $110, the present value of the strike price is $105, the time to maturity of both options is 1, and the price of the American call is $4
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1)The current stock price is $100, the strike price of American call and put is $110, the present value of the strike price is $105, the time to maturity of both options is 1, and the price of the American call is $4. Which of the following is a possible price of the American put and satisfies the put-call parity?
A. 4
B. 8
C. 12
D. 16
E. 20
2. In above problem, if the stock is a dividend paying stock, which of the above given choices for the price of the American put satisfies the American put-call parity?
A. 4, 8, 12
B. 12, 16, 20
C. 8, 16, 20
D. All of the above
E. None of the above
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