What Is the Current Value of a Six-Month Call Option

question 51

Multiple Choice

What is the current value of a six-month call option with an exercise price of $15? The six-month risk-free interest rate (periodic rate) is 5%. [Use the replicating portfolio method]

• A) $8.73
• B) $10.28
• C) $16.88
• D) $13.33

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Self-Defence

The act of defending oneself, one's property, or another person from physical harm, using reasonable force as permitted by law.

Tort Of Nuisance

A legal action for damages caused by an unreasonable, unwarranted, or unlawful use of one's property causing inconvenience or damage to others.

Assault And Battery

A legal term used to describe the act of threatening a person (assault) combined with the actual physical attack on them (battery).

Tort Of Battery

A legal claim brought against an individual for causing unconsented physical contact or harm to another person.