Shares of a Stock Are Currently Priced at $61

question 319

Multiple Choice

Shares of a stock are currently priced at $61. The future price is estimated at either $52 or $62. The risk-free rate of return is 4%. What is the value of a twelve-month call option with a strike price of $55?

• A) $5.48
• B) $6.00
• C) $6.19
• D) $7.70
• E) $12.00

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