Is this option correctly priced?
Mr. Nash holds an American put option on Delta Triangle, a non-dividend-paying stock. The strike price of the put is $40, and Delta Triangle's stock is currently selling for $35 per share. The current market price of the put is $4.50. Is this option correctly priced? If not, should Mr. Nash buy or sell the option in order to take advantage of the mispricing?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/is-this-option-correctly-priced-3eg6