FactorsAffectingOptionPrices
Suppose Amazon stock is trading for $70 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 $100?
c. What is the minimum possible value of a call option on Amazon stock with a strike price of $50?
d. What is the minimum possible value of an American put option on Amazon stock with a strike price of $100?
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