New to finance questions and reading from 150 Most Frequently Asked Questions on Quant Interviews. In the solutions section of this book, it says:
In the plane (K,P(K)) the options values correspond to the points (30,6), (20,4), and (0,0) which are on the line P(K) = (2/3)K.
I feel like I am missing something obvious about the problem, because all three of those points lie on the line P(K) = (1/5)K. It looks like 2/3 of point one gives point two but that is not equivalent.
Does anyone have any insight? Thank you!
