Practice Question Set: Properties of Options

Chapter 13. Properties of Options Practice Question set contains 25 pages covering the following learning objectives:

* Identify the six factors that affect an option’s price.

* Identify and compute upper and lower bounds for option prices on non-dividend and dividend-paying stocks.

* Explain put-call parity and apply it to the valuation of European and American stock options, with dividends and without dividends, and express it in terms of forward prices.

* Explain and assess potential rationales for using the early exercise features of American call and put options.

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