What Is the Current Value of a Six-Month Call Option

question 54

Multiple Choice

What is the current value of a six-month call option with an exercise price of $12? The six-month risk-free interest rate is 5% per six-month period.[Use the risk-neutral valuation method.]

• A)$9.78
• B)$10.28
• C)$16.88
• D)$13.33

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An ancient Greek philosopher and polymath whose extensive writings cover a wide range of subjects, including physics, metaphysics, logic, ethics, and politics, significantly influencing Western intellectual history.

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