Multiple Choice
The stock price is $30. The strike price of a three-month European put option is $32. If the put option is priced at $5, and the risk-free rate of interest is 2%, and the stock pays no dividends, then the insurance value of the option is
A) 1.84
B) 2.00
C) 3.16
D) 4.96
Correct Answer:
Verified
Correct Answer:
Verified
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