The Current Stock Price of International Paper Is $69 and the Stock

question 36

Multiple Choice

The current stock price of International Paper is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation of International Paper's stock is 25%. You wish to purchase a call option on this stock with an exercise price of $70 and an expiration date 73 days from now.
-Using the Black-Scholes OPM,the call option should be worth __________ today.

• A) $2.50
• B) $2.94
• C) $3.26
• D) $3.50

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Generational Poverty

Being in poverty for at least two generations.

Misconception

A belief or idea that is incorrect based on a misunderstanding of facts or concepts.

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Public dissatisfaction or disorder caused by a group within society over issues of public concern, often manifesting in protests or demonstrations.