A Stock with a Current Price of $22 Will Either

question 54

Multiple Choice

A stock with a current price of $22 will either move up to $32.00 or down to $15 over the next period. The risk-free rate of interest is 1.1%. What is the value of a call option with a strike price of $25?

• A)$2.20
• B)$2.34
• C)$2.67
• D)$2.79
• E)$2.41

---

Definitions:

Anti-dandruff

refers to products or treatments designed to prevent or alleviate dandruff, which is the shedding of dead skin cells from the scalp.

Health-oriented

Describes a focus or approach that prioritizes health and wellness in choices and practices.

Product Label

A piece of information attached to a product that provides important details about it, including ingredients, use instructions, and manufacturer information.

Nutrient Content

The specific amounts of vitamins, minerals, fats, proteins, and carbohydrates present in a food item.