A One-Year Call Option Has a Strike Price of 60

question 91

Multiple Choice

A one-year call option has a strike price of 60, expires in 6 months, and has a price of $2.5. If the risk-free rate is 7 percent, and the current stock price is $55, what should the corresponding put be worth?

• A) $5.00
• B) $4.56
• C) $5.50
• D) $7.08
• E) $7.54

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