Problem

10. There are call and put options on ABC stock with strikes of 40 and 50. The 40-strike c...

10. There are call and put options on ABC stock with strikes of 40 and 50. The 40-strike call is priced at $13 while the 50-strike put is at $12.8. What are the best bounds you can find for (a) the 40-strike put and (b) the 50-strike call?

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Solutions For Problems in Chapter 9