Business, 16.06.2020 23:57 ashtin8642

You own one share of stock in BA's Best, Inc., as well as a put option on the same company with an exercise price of $40 and an expiration date one year from now. Which of the following functions describes the combined present value of the stock and the option, as a function of share price p at the expiration date? In other words, what is the current value of both assets, as a function of the future value of the stock at expiration? Assume an effective annual discount rate of 8%. a. p> 40 p < 40 P 1.08
b. 40 p < 40 1p p > 40 40 p > 40
c. p < 40
d. 40 – P 37
e. p < 40 p> 40 P 1.08

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You own one share of stock in BA's Best, Inc., as well as a put option on the same company with an e...