A Stock with a Current Price of $32 Will Either

question 53

Multiple Choice

A stock with a current price of $32 will either move up to $40.00 or down to $30 over the next period.The risk-free rate of interest is 3 percent.What is the value of a call option with a strike price of $35?

• A) $1.30
• B) $1.44
• C) $1.87
• D) $2.09
• E) $2.41

---

Definitions:

Logic Circuits

Electronic circuits designed to execute logical operations, where the output depends logically on one or more inputs.

ON State Input Voltage

The specific voltage level required at the input of a device or circuit to consider the state as "on" or active.

Leakage Voltage

The voltage that appears across a device or insulating material that is supposed to be non-conductive, indicating an incomplete isolation or faulty insulation.

Status Indicators

Visual or auditory signals (such as LEDs or beeps) on devices or equipment that show their current operating condition, such as on/off, error, or operational status.