The Ordinary Shares of Winssonis Currently Priced at €52

question 54

Multiple Choice

The ordinary shares of Winssonis currently priced at €52.50 a share.One year from now, the share price is expected to be either €54 or €60 a share.The risk-free rate of return is 4%.What is the
Value of one call option on Winsson share with an exercise price of €55?

• A)€0.39
• B)€0.41
• C)€0.45
• D)€0.48
• E)€0.51

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Definitions:

Mind-Set Continuum

The range or spectrum of attitudes or beliefs individuals may hold, reflecting how fixed or growth-oriented they are in their thinking and approach.

Enterprising

Showing initiative, willingness to undertake new ventures, and the ability to think creatively and innovatively.

Generate And Exploit

A strategy that involves creating new ideas, products, or processes and making use of them to achieve competitive advantage or market success.

Minimize Or Shed

Strategies employed to reduce, remove, or delegate non-core business activities or assets to focus on primary objectives.