Folder:
115 CFA
File:
115.080.02.08 - Reading 49 - 8. Factors that Affect the Value of an Option

8. Factors that Affect the Value of an Option

k. identify the factors that determine the value of an option and explain how each factor affects the value of an option;

How is the lower bound of a European put constructed?
The lower bound of a European put is established by constructing a portfolio consisting of a long put, a long position in the underlying, and the issuance of a zero-coupon bond.

(This section probably needs to be revisited in detail)


Source:
  • CFA