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What Is the Put Option Premium Given the Following Information

Question 7

Multiple Choice

What is the put option premium given the following information?
 Time (years)  .5 Strike price $25.00 Stock price $24.50 Risk-free rate 2.00% Volatility 30%\begin{array}{lr}\text { Time (years) } & .5 \\\text { Strike price } & \$ 25.00 \\\text { Stock price } & \$ 24.50 \\\text { Risk-free rate } & 2.00\% \\\text { Volatility } & 30\%\end{array}


A) $1.20
B) $1.54
C) $1.82
D) $2.01
E) $2.21

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