Bruno's Stock Is Currently Selling for $31

question 50

Multiple Choice

Bruno's stock is currently selling for $31.74 a share but is expected to increase to either $32 or $37 a share over the next year.The risk-free rate is 3 percent.What is the current value of a 1-year call option with an exercise price of $35?

• A)$)27
• B)$)33
• C)$)64
• D)$)89
• E)$)52

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Definitions:

Class Differences

Variations in the social, economic, and cultural status among different groups within a society, often influencing access to resources and opportunities.

Cognitive Norms

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A term referring to diseases or conditions that are caused by physical changes in the body, often diagnosable through laboratory testing or medical imaging.

End-Stage Syphilis

The final and most severe phase of syphilis, characterized by significant damage to the heart, brain, and other organs.