Suppose a $60 Strike Call Has 45 Days Until Expiration

question 4

Multiple Choice

Suppose a $60 strike call has 45 days until expiration and pays a 1.5% continuous dividend.Assume S = $58.50,σ = 0.25,and r = 0.06.What is the option elasticity given an immediate price increase of $1.50?

• A) 24.61
• B) 18.61
• C) 14.61
• D) 9.61

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A constitutional principle in the U.S. that requires states to treat all citizens equally under the law, prohibiting discrimination on arbitrary grounds.

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An amendment to the US Constitution that provides several rights relevant to both criminal and civil legal proceedings, including protections against self-incrimination and double jeopardy.

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A constitutional guarantee found in the Fifth and Fourteenth Amendments of the U.S. Constitution, assuring all citizens fair treatment through the judicial system.

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