Assume That a Stock Is Currently Selling for $33, and That

question 24

Multiple Choice

Assume that a stock is currently selling for $33, and that its price is equally likely to increase by 10% or decrease by 5% in the next instant. Assume that bonds increase at the risk-free rate of 1
+ 0.2% each instant. Determine the current value of a call option on this stock that will expire
In one instant and has a strike price of $35. Round your answer to the nearest cent.

• A)$0.45
• B)$0.00
• C)$2.00
• D)$1.82

---

Definitions:

Hearing

The sense through which sounds are perceived, involving the process of detecting and interpreting sound waves.

Visual Sensory Impairment

A reduction or loss of vision that cannot be corrected fully with glasses or contact lenses.

Social Isolation

Social isolation is a state where an individual lacks a sense of belonging, social engagement, or sustaining relationships with others.

Self-care Deficit

Describes a condition where an individual is unable to perform essential self-care activities due to physical, mental, or emotional limitations.