Question

At the opening of the market, a call on Tesla, with strike $1050, is trading at...

At the opening of the market, a call on Tesla, with strike $1050, is trading at $80, while a put on Tesla with strike $1050 is trading at $60. Both call and put have the same 5 year expiry. If, at the close of the market on the same day, the call is trading at $90, while the put is trading at $55, Tesla's closing market price is _____ the opening market price? Prevailing interest rate in the market was unchanged during the day.

None of the above

Same as                   

Lesser than                

Greater than             

Homework Answers

Answer #1

Ans: greater than

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