Assume S = $53,K = 50,div = 0,r = 0

question 14

Multiple Choice

Assume S = $53,K = 50,div = 0,r = 0.03,σ = 0.30,and 100 days until expiration.What is the premium on a knock-in put option with an up-and-in barrier of $55?

• A) $0.63
• B) $0.73
• C) $0.83
• D) $0.93