Assume a Two-Period World with a Current Share Price of $21.00,an

Multiple Choice

Assume a two-period world with a current share price of $21.00,an interest rate of 6.5% over the period,a price increase factor of 1.43 and a price decrease factor of 0.55.What are the possible end-of-period prices?

A) $\$ 18.70$ and $\$ 8.71$
B) $\$ 21.25$ and $\$ 9.64$
C) $\$ 22.61$ and $\$ 10.78$
D) $\$ 30.03$ and $\$ 11.55$