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 percent.What is the value of a call option with a strike price of $40?
A) $0.49
B) $0.68
C) $0.86
D) $0.97
E) $1.21
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q8: Which one of the following statements is
Q20: Which of the following statements related to
Q45: You own 1,800 shares of Textile stock
Q46: You own 2,500 shares of Jordan Co.stock
Q47: What is the call option premium given
Q48: Mike was granted stock options on 1,000
Q49: A stock with a current price of
Q51: Given a set of variables,the Black-Scholes option
Q53: A stock with a current price of
Q75: All else constant, which one of the