Solved

A Stock Is Selling for $68

Question 10

Multiple Choice

A stock is selling for $68.50.Interest rates are 6.0% and the returns on the stock have a standard deviation of 32.0%.What is the forecasted price of the stock using 3-month periods at Sᵤᵤdᵤ?


A) $74.08
B) $94.24
C) $100.17
D) $111.12

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q5: A stock is selling for $18.50.The strike

Q6: A stock is selling for $41.60.The strike

Q7: Using a binomial tree explanation,explain the situation

Q8: Discuss options on other assets.Ask students to

Q9: A call option has an exercise price

Q11: For an option trading in the money,what

Q12: A stock is selling for $53.20.Interest rates

Q13: Using a binomial tree,what is the price

Q14: Draw the binomial tree listing only the

Q15: Explain the impact a constant dividend yield