A 4-Month,$25 Call Option on Teller Stock Has an Option

question 3

Multiple Choice

A 4-month,$25 call option on Teller stock has an option premium of $0.25.The 4-month,$25 put option has an option premium of $0.80.The risk-free rate is 3 percent.The options are European-style.What is the price of Teller stock?

• A) $24.20
• B) $24.53
• C) $24.62
• D) $25.97
• E) $26.08

---

Definitions:

Pulse Rate

The number of heartbeats per minute, indicative of heart rate and cardiovascular health.

Gravity

The natural force of attraction exerted by a celestial body, such as Earth, on objects or particles, drawing them toward its center.

Systolic Pressures

The pressure in the arteries when the heart beats and fills them with blood, representing the top number in a blood pressure reading.

Systemic Circuit

A part of the cardiovascular system that carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.