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

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