A Call Option with 1 Month to Expiration Currently Sells

question 87

Multiple Choice

A call option with 1 month to expiration currently sells for $0.70.A put option with the same expiration sells for $1.10.The options are European style.The risk-free rate is 3 percent and the strike price of both options is $18.00.What is the current stock price?

• A) $16.87
• B) $17.06
• C) $17.29
• D) $17.56
• E) $17.86

Recognize the conditions under which a principal can ratify unauthorized acts of an agent.

Learn about the principles governing liability for tortious acts committed by agents.

Understand the special rules concerning agency relationships in real estate transactions.

Grasp the impact of an agent’s actions on the legal status and liability of the principal.

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