Multiple Choice
A stock with a current price of $25 will either move up to $32 or down to $20 over the next period. The risk-free rate of interest is 3.5%. What is the value of a call option with a strike price of $30?
A) $.68
B) $.74
C) $.95
D) $1.12
E) $1.31
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q14: Which one of the following inputs is
Q15: Which one of the following situations will
Q16: A stock with a current price of
Q17: Mike was granted stock options on 10,000
Q18: You own 2,500 shares of Jordan Co.
Q20: Which of the following statements related to
Q21: All else constant, which one of the
Q22: How frequently should you consider rebalancing the
Q23: Which one of the following statements is
Q24: A stock with a current price of