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A Stock Is Selling for $32

Question 21

Multiple Choice

A stock is selling for $32.70.The strike price on a call,maturing in 6 months,is $35.The possible stock prices at the end of 6 months are $39.50 and $28.40.If interest rates are 6.0%,what is the option price?


A) $1.90
B) $2.80
C) $3.40
D) $4.20

Correct Answer:

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