How to do q 78 and q 80.
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For 78 the answer will be 101 Option B
remember; fiduciary call = protective put
So protective put here = p+ and S+
4+97 = 101
For 80 The value of American put can be equal to or more than that of European option but not less than the European options so OPTION A
Thanks
what’s the answer for 79?
Apply the put call parity rule and you will get the answer.
It will come out to be 2.21