Consider an American put option on XAL stock with a strike price of $69 and one year to expiration.
Consider an American put option on XAL stock with a strike price of $69 and one year to expiration. Assume XAL pays no dividends, XAL is currently trading for $13 per share, and the one-year interest rate is 9 %. If it is optimal to exercise this option early: a. What is the price of […]