A Call Option Has an Exercise Price of $30

question 9

Multiple Choice

A call option has an exercise price of $30.The stock price at a point on the binomial tree is $36.24.The calculated present value of the option at that same point is $5.86.What figure should be used to calculate option prices at points moving toward the final price?

• A) $5.86
• B) $6.24
• C) $6.62
• D) $7.01

---

Definitions:

Uniformly Spread

Evenly distributed or balanced in terms of allocation, use, or occurrence across a specified area or within a particular process.

Supply Chain Network Design

The strategic planning and setup of the structure and configuration of a supply chain, optimizing its efficiency and effectiveness.

Facility Location

The process of determining the optimal placement for operations, considering factors like cost, accessibility, and proximity to markets.

Capacity Allocation

The process of determining and assigning the available capacity or resources of a facility, system, or organization to various tasks or projects to optimize efficiency and output.