A Call Option with 6 Months to Expiration Currently Sells

question 69

Multiple Choice

A call option with 6 months to expiration currently sells for $2.20. A put option with the same expiration sells for $0.50. 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) $50.97
• D) $51.29
• E) $52.08

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Lorazepam

A medication used to treat anxiety disorders, providing a calming effect by acting on the central nervous system.

Tablet

is a solid dosage form of medication, typically ingested orally, designed to deliver a specific dose of medication.

Aspiration

The inhalation of foreign materials into the lungs, or a strong desire for achievement.

Blood Return

The visible flow of blood back into a device, such as a syringe, indicating successful entry into a vein during intravenous procedures.