A Stock with a Current Price of $32 Will Either

question 24

Multiple Choice

A stock with a current price of $32 will either move up to $40.00 or down to $30 over the next period. The risk-free rate of interest is 2.3%. What is the value of a call option with a strike price of $33?

• A)$1.30
• B)$1.44
• C)$1.87
• D)$2.09
• E)$2.41

---

Definitions:

Java.util

A package in the Java programming language that contains collections of utility classes, including data structures, date and time facilities, and random number generators.

Vector

In programming, a dynamic array that can grow or shrink in size as needed. In mathematics, it represents a quantity having both magnitude and direction.

Empty Vector

A vector data structure that contains no elements and has a size of zero.