Multiple Choice
The stock price of Atlantis Corp.is $43 today.The risk-free rate of return is 10% and Atlantis Corp.pays no dividends.A call option on Atlantis Corp.stock with an exercise price of $40 and an expiration date six months from now is worth $5.00 today.A put option on Atlantis Corp.stock with an exercise price of $40 and an expiration date six months from now should be worth __________ today.
A) $0.05
B) $0.14
C) $2.00
D) $3.95
Correct Answer:
Verified
Correct Answer:
Verified
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