A One-Year European Call Option on ABX Corporation with a Strike

question 35

Multiple Choice

A one-year European call option on ABX corporation with a strike price of $50 is currently trading for $4.30,and a one-year European put option on ABX with the same strike price is currently trading for $1.47.If the stock pays no dividends and the risk free rate is 4% per year,what is the current price of ABX stock?

• A)$39.79
• B)$41.57
• C)$45.25
• D)$50.91
• E)$53.85

Recognize the complexities and challenges involved in administering national elections within the United States.

Understand the basic anatomy and functioning of the human visual system, including the roles of the occipital and temporal lobes.

Grasp the concept of feature detection and the role of feature detectors located in the brain.

Recognize the principles of color vision, including the opponent-process theory and the processing of color.

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Definitions:

Dividends Paid

The portion of a company's earnings that is distributed to shareholders as a return on their investment in the company's equity.

Voting Shares

Voting shares that enable the owner to have a say in corporate affairs, such as the selection of the board of directors.

Held For Sale

Refers to assets that a company intends to sell within the next year, often reported separately on financial statements.

Investment In Associate

An investment in another company in which the investor has significant influence but not full control, usually reflected in the ownership of 20% to 50% of the voting stock.