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The Current Stock Price of KMW Is $27, the Risk-Free

Question 16

Multiple Choice

The current stock price of KMW is $27, the risk-free rate of return is 4%, and the standard deviation is 30%. What is the price of a 63-day call option with an exercise price of $25?


A) $2.50
B) $2.65
C) $2.89
D) $3.12

Correct Answer:

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