Assume a One-Period World with Current Share Price of $5 $1.0565$

question 33

Multiple Choice

Assume a one-period world with current share price of $5.00,interest rate of 8% over the period and a price increase factor of 1.25.Given this information,the current premium on a call option with an exercise price of $4.50 using the binomial model is:

• A) \( 1.0565 \)
• B) \( 1.1131 \)
• C) \( 1.1256 \)
• D) \( 1,3042\)

---

Definitions:

Change Bodies

Refers to the idea of altering one's physical form, potentially in the context of medical, technological, or speculative fiction scenarios.

Total Institutions

Are settings in which people are isolated from the larger society and under the strict control and constant supervision of a specialized staff.

Institutional Settings

Environments or contexts defined by established organizations or structured systems where specific rules, practices, and cultures are maintained.

Authoritarian Communities

Societies or groups that are governed by leaders who exercise absolute control, often limiting personal freedoms.