A Stock Currently Trades for $115

question 87

Multiple Choice

A stock currently trades for $115. January call options with a strike price of $100 sell for $16, and January put options a strike price of $100 sell for $5. Estimate the price of a risk-free bond.

• A) $120
• B) $15
• C) $105
• D) $116
• E) $104

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Definitions:

Laboratory Observation

The method of observing subjects' behavior in a controlled environment within a laboratory setting.

Stimulant Drugs

Substances that increase activity in the brain and body, leading to increased alertness and physical energy.

Sexual Arousal

A condition characterized by the psychological and physiological readiness and arousal for engaging in sexual activity.

Physiological Stages

Distinct phases within a biological process or cycle, characterized by specific physiological states or changes.