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  1. Nicole Seaman

    P1.T3.725. Properties of stock options, including lower bounds (Hull Chapter 11)

    Learning objectives: Identify the six factors that affect an option’s price and describe how these six factors affect the price for both European and American options. Identify and compute upper and lower bounds for option prices on non-dividend and dividend paying stocks. Questions: 725.1...
  2. W

    Upper and lower bounds on options

    Hi David, According to Hull, dividends play a role in determining the lower bounds of options prices, but that does not appear in your video. If a question like this arises and the stock provides dividends, should we go by what Hull says? I also have notes from a class I took that says...