Multiple Choice
A stock with a current price of $40 will either move up to $41 or down to $39 over the next period. The risk-free rate of interest is 2.45%. What is the value of a call option with a strike price of $40?
A) $.49
B) $.68
C) $.86
D) $.97
E) $1.21
Correct Answer:
Verified
Correct Answer:
Verified
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