The 3-Month Options on XYZ Stock Have a Strike Price

question 65

Multiple Choice

The 3-month options on XYZ stock have a strike price of $35 while the stock price is $43.The risk-free rate is 3.15 percent,the standard deviation is 27 percent,N(d₁) is 0.95060 and N(d₂) is 0.93520.What is the call price?

• A)$4.14
• B)$4.72
• C)$8.40
• D)$6.56
• E)$5.64

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