1 currently the index is standing at 1068 the risk-free, Ask an Expert

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1) Currently the index is standing at 1,068. The risk-free rate is 4% per annum and the dividend yield is 1% per annum. A 6-month European put option on the index with a strike price of 1000 is trading at $46.59. What is the value of a 6-month European call option on the index with the same strike price?

2) For an American call option, one should early exercise when the current stock price is greater than the strike price because the exercise payoff is positive. (True/ False)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91619716

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