Business, 19.08.2020 04:01 fernandofhn1844

Discount factor is 0.985. Stock XYZ is selling for $40 a share. An American option on this stock with a strike price of $38 is trading at $0.25 per share. If it is known that this option is priced above its intrinsic value, what type of option is it?

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Discount factor is 0.985. Stock XYZ is selling for $40 a share. An American option on this stock wit...

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