A 4-Month ABC $30 Call Is Priced at $1

question 79

Multiple Choice

A 4-month ABC $30 call is priced at $1.50 while the 4-month ABC put is priced at $2.20.Risk-free assets are currently returning 0.25 percent per month.What is the price of ABC stock?

• A)$29
• B)$27
• C)$31
• D)$34
• E)$30

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Definitions:

Lateral

Pertaining to the side; describes a position farther from the midline of the body or structure.

Supine

A position of lying face up or on the back.

Prone

Lying flat, especially face downwards or inclined to have a particular condition or to do something.

Venography

A diagnostic procedure that involves imaging the veins by injecting them with a contrast dye to make them visible on X-rays.