A Call Option with 6 Months to Expiration Currently Sells

question 33

Multiple Choice

A call option with 6 months to expiration currently sells for $2.05.A put option with the same expiration sells for $0.60.The options are European style.The risk-free rate is 3.0 percent and the strike price of both options is $50.What is the current stock price?

• A) $47.89
• B) $49.19
• C) $50.72
• D) $51.29
• E) $52.08

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Definitions:

Self-absorption

Excessive preoccupation with oneself and one's own feelings or affairs.

Drinking Prevention

Efforts and strategies to reduce or prevent the consumption of alcohol, especially underaged drinking or drinking to excess.

Stress Management

Techniques and strategies used to handle stress effectively, promoting mental and physical well-being.

Self-esteem

A person's overall subjective sense of personal worth or value.