Multiple Choice
A SunSet Co.customer would like to obtain a 3-month option to purchase additional units of a product for $77 each.This product currently sells for $76 each.Assume u equals 1.1502 and d = .8694.Approximately what price per unit should SunSet charge for this option if the annual risk-free rate is 2.8 percent?
A) $4.79
B) $5.98
C) $6.17
D) $6.02
E) $5.07
Correct Answer:
Verified
Correct Answer:
Verified
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