Assume the Following Data on a 6-Month Call Option, Using

question 10

Multiple Choice

Assume the following data on a 6-month call option, using 3-month intervals as the time period. K = $70, S = $68.50, r = 6.0%, = .32. What is the highest possible stock price associated with this data and the binomial pricing model?

• A) $ 51.26
• B) $ 68.50
• C) $ 70.59
• D) $ 91.21

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