You are given the following discount factors: You are told that the price of a European Call option on a 6-month zero coupon bond, with T =0.5andK =99.35 is 0.13. While the price of a European Put option with the exact same speciﬁcation is: 0.11. Are the securities adequately priced?

Question

You are given the following discount factors:  You are told that the price of a European Call option on a 6-month zero coupon bond, with T =0.5andK =99.35 is 0.13. While the price of a European Put option with the exact same speciﬁcation is: 0.11. Are the securities adequately priced?

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The Answer of You are given the following discount factors:  You are told that the price of a European Call option on a 6-month zero coupon bond, with T =0.5andK =99.35 is 0.13. While the price of a European Put option with the exact same speciﬁcation is: 0.11. Are the securities adequately priced?

You Are Given the Following Discount Factors: You Are