Consider an american put option on a nondividend paying, Ask an Expert

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Consider an American put option on a nondividend paying stock when the stock price is $60, strike price is $65, risk-free rate is 4%, volatility is 20%, and the time to maturity is 6 months.

What would a time value ('risk component') component of zero indicate? Be precise.

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Financial Management, Finance

Category:- Financial Management
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