1 underling price at 100 and follows a uniform distribution, Ask an Expert

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1. Underling price at $100, and follows a uniform distribution with MAD of 20.

a. What is probability for 80 strike put to be ITM?

b. What is the average price of underlying when put is ITM?

c. What is the average payment when put is ITM?

d. What is the price of the put? How much of that is intrinsic value, and how much is time value?

(for practice redo the same question for 100 PUT. 100 CALL. )

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92676239

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