A Call Option on Juniper Corp

question 48

Multiple Choice

A call option on Juniper Corp.stock with an exercise price of $75 and an expiration date one year from now is worth $3.00 today.A put option on Juniper Corp.stock with an exercise price of $75 and an expiration date one year from now is worth $2.50 today.The risk-free rate of return is 8% and Juniper Corp.pays no dividends.The stock should be worth __________ today.

• A) $69.73
• B) $71.69
• C) $73.12
• D) $77.25

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Definitions:

GLOBE Project

Refers to the "Global Leadership and Organizational Behavior Effectiveness" research program, studying cross-cultural leadership behaviors and organizational effectiveness.

Authoritarian Style

A leadership style characterized by strong control over all decisions and little input from team members.

International Managers

Refers to managers who operate across national borders, handling business operations in multiple countries and navigating diverse cultural environments.

Geocentric Management

An approach to international business that seeks the best people for key jobs throughout an organization, regardless of nationality.