The Common Stock of Delta Securities Is Selling for $62

question 169

Multiple Choice

The common stock of Delta Securities is selling for $62.60 a share. Treasury bills are currently yielding 5.2 percent. What is the current value of a one-year call option on Delta stock if the exercise price is $55 and you assume the option will finish in the money?

• A) $7.22
• B) $7.60
• C) $9.81
• D) $10.32
• E) $10.86

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