A European Call Option on a Stock Has an Exercise

question 31

Multiple Choice

A European call option on a stock has an exercise price of $50, is selling for $6.50, and has 3 months to expiration. The stock itself is currently selling for $53.38. The annualized risk-free
Rate is 3%. If the call option is fairly priced, what is the fair price of a European put option on
This stock that has the same strike price and time to expiration?

• A)$1.66
• B)$2.75
• C)$11.34
• D)$10.25

Recognize the significance and objectives of the American Temperance Society.

Comprehend the goals and strategies of key reform and abolitionist movements, including their stance on slavery and citizenship rights.

Understand the influence of the Second Great Awakening on American society and reform movements.

Analyze the goals and outcomes associated with the establishment of common schools and their role in societal development.