Suppose Amazon stock is trading for $120 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 $150? c. What is the minimum possible value of a call option on Amazon stock with a strike price of $95? d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $175? a. What is the maximum possible price of a call option on Amazon? The maximum possible price of the call option on Amazon would be $ (Round to the nearest dollar.)

Suppose Amazon stock is trading for $120 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 $150? c. What is the minimum possible value of a call option on Amazon stock with a strike price of $95? d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $175? a. What is the maximum possible price of a call option on Amazon? The maximum possible price of the call option on Amazon would be $ (Round to the nearest dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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