A Stock Is Selling for $45

question 8

Multiple Choice

A stock is selling for $45.75 with a call option available at a $40 strike that has a premium of $7.50. What percentage of the common stock price does the speculative premium represent?

• A)16.39%
• B)14.375%
• C)12.57%
• D)4.38%
• E)3.83%

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