Examlex

Solved

A Call Option Has a Premium of $0

question 28

Multiple Choice

A call option has a premium of $0.60,a strike price of $40,and 3 months to expiration.The current stock price is $39.60.The stock will pay a $0.80 dividend two months from now.The risk-free rate is 3 percent.What is the premium on a 3-month put with a strike price of $40? Assume the options are European style.


Definitions:

Job Performance

The effectiveness with which job incumbents execute their job tasks and responsibilities.

Marker Variable

A variable used as an indicator or proxy for another variable in statistical analyses.

Years of Education

The total number of academic years an individual has completed as part of their formal schooling.

Conscientiousness

One of the five major personality traits, characterized by being organized, responsible, and reliable.

Related Questions