A 4-Month, $30 Call Option on Teller Stock Has an Option

question 49

Multiple Choice

A 4-month, $30 call option on Teller stock has an option premium of $.35. The 4-month, $30 put option has an option premium of $.60. The risk-free rate is 1.1%. The options are European-style. What is the price of Teller stock?

• A)$29.20
• B)$29.53
• C)$29.64
• D)$29.97
• E)$30.08