Suppose Amazon stock is trading for $70 per share, and Amazon pays no dividends
June 8th, 2024
FactorsAffectingOptionPricesSuppose 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?