A Stock with a Current Price of $25 Will Either

question 19

Multiple Choice

A stock with a current price of $25 will either move up to $32 or down to $20 over the next period. The risk-free rate of interest is 3.5%. What is the value of a call option with a strike price of $30?

• A)$.68
• B)$.74
• C)$.95
• D)$1.12
• E)$1.31

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