Multiple Choice
A stock has a market price of $25 and a standard deviation of returns of 24 percent.The $25 call option matures in 4 months and the risk-free rate is 2.89 percent.N(d1) is .555198 and N(d2) is .500096.What is the value of the call option per share of stock?
A) $1.71
B) $1.86
C) $1.50
D) $1.62
E) $2.16
Correct Answer:
Verified
Correct Answer:
Verified
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