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Postby a.joshi.a » Wed Jan 23, 2013 7:36 am

If stock price is increase, why put option 's value will decrease?

Lower bound of American call option is (S-K)/(1+r)powert, why?

What does lower and upper bound define in case of Call and put options?

Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am


Postby content.pristine » Tue Jan 29, 2013 5:32 pm

Dear a.joshi.a,

I believe you should revise the basics once again. You can answer these questions you have by reading the options reading in the curriculum. Also, please refer to the online videos.

If you have any further doubts, I will be happy to clarify them..

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