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Which of the following does not affect price of an option?

Maria, has an American call option with strike price of $55 on stock ABC. Stock ABC has a buy rating from major brokers and is currently trading at $40. Assuming risk-free rate of 8% and stock paying no dividends, when should Maria exercise this call option?

“In comparison to exchange traded options, ESOPs are exercised earlier”.

Consider a call option call with $45 as strike price trading at $10 for a stock ABC currently trading at $55. What should be the price of a $75 call option for the same stock in comparison to $45 call option, keeping all other things constant?

We have two American call options with 2 months and 5 months to expiration. Assuming a dividend is expected to be paid in 4 months, we can say that 5 months expiry call option will be worth more than 2 months expiry call option, due to higher chances of being ITM.

Using the above question, we can say that price of 5-month to expiry put option will decrease as well due to dividend payout same as of call option?

Which of the following factors does not affect price of a European Put option?

A call option of strike price of $1050 with 1-month maturity cannot have a price of:

If we have a European put option with strike price of $1050 and expiration. Assuming risk-free rate of 5% per year, this put option can have a maximum price of:

In case of an American put option with same strike price and expiration, what can be maximum price of that option:

What is the minimum price of the similar American put option used above?

Read the following information and use this to answer questions below:

A stock ABC is currently trading $45. We have a European call option on stock worth $12 for strike price of $50 with a maturity of 3 months. The European put of same strike price & maturity trade at $5 price. Assume risk-free rate to be 6% pa continuously compounded a non-dividend paying stock.

(1). Using put call parity, determine if any arbitrage opportunities exist. If yes, what actions should be taken:

Read the following information and use this to answer questions below:

A stock ABC is currently trading $45. We have a European call option on stock worth $12 for strike price of $50 with a maturity of 3 months. The European put of same strike price & maturity trade at $5 price. Assume risk-free rate to be 6% pa continuously compounded a non-dividend paying stock.

(2) For the above position created for arbitrage, what will be the outlay of position:

Read the following information and use this to answer questions below:

A stock ABC is currently trading $45. We have a European call option on stock worth $4 for strike price of $50 with a maturity of 4 months. The European put of same strike price & maturity trade at $11 price. Assume risk-free rate to be 6% pa continuously compounded a dividend of $2is expected to be paid in  3 months

1) Using put call parity, determine if any arbitrage opportunities exist. If yes, what actions should be taken:

Read the following information and use this to answer questions below:

A stock ABC is currently trading $45. We have a European call option on stock worth $4 for strike price of $50 with a maturity of 4 months. The European put of same strike price & maturity trade at $11 price. Assume risk-free rate to be 6% pa continuously compounded a dividend of $2is expected to be paid in  3 months

2) For the above position created for arbitrage, what will be the inlay of position:

The primary advantage of using forward prices in put call parity eliminates the need for estimation of ______________.

“An ITM American call option on an non-dividend paying stock is always greater than its intrinsic value”.

The current price of a non-dividend paying stock is $550. Price of a 4-month put option is $55 for strike price of $600. Determine price of a 4-month call option with same strike price and maturity. Assume risk-free rate as 6% yearly continuously compounded and no arbitrage opportunities exists.

Using forward prices, which of the following helps to make the price of a European call option be equal to European put price on the same underlying asset with same strike price and time to expiration.