Consider european put option expiring

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Reference no: EM131939999

1. Which of the following options will NOT be exercised early?

A. Put on a dividend paying stock

B. Call on a non-dividend paying stock

C. Put on a non-dividend paying stock

D. Call on a dividend paying stock

2. Consider a European put option expiring in 90 days on a non-dividend-paying stock trading at 82 when the risk-free rate is 4%. The lower bound for this European put option with an exercise price of 85 is:

A. $2.39.

B. $2.18.

C. $0.

D. $2.11.

Reference no: EM131939999

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