You Notice That the Price of a One-Year Put Option,with

question 49

Multiple Choice

You notice that the price of a one-year put option,with a $60 strike price,is $1.The current price of the underlying stock is also $58.What should the price of a one-year call option be with a strike price of $60? Assume that the interest rate on a one-year risk free bond is 10%.

• A) $0
• B) $2
• C) $2.45
• D) $4.45

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Definitions:

Costly Medical

Refers to healthcare services or treatments that entail high expenses, often leading to financial strains for individuals or healthcare systems.

Median Household Income

The middle income value when all the households in a given area are arranged from lowest to highest income; half of households earn more and half earn less than this amount.

Household Income

The combined gross income of all members of a household, usually measured annually, that is available for spending or saving.

Poverty Rates

Measures the proportion of the population living below the poverty line, reflecting the general state of economic deprivation in a society.