A 2-Month, $20 Call Option on ABC Stock Has an Option

question 92

Multiple Choice

A 2-month, $20 call option on ABC stock has an option premium of $0.40. The 2-month, $20 put option has an option premium of $1.60. The risk-free rate of interest is 5%. The options are European style. What is the price of ABC stock?

• A) $15.23
• B) $13.46
• C) $18.64
• D) $10.79
• E) $17.41

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