A One Year Call Option Has a Strike Price of 50,expires

question 70

Multiple Choice

A one year call option has a strike price of 50,expires in 6 months,and has a price of $5.04.If the risk free rate is 5%,and the current stock price is $50,what should the corresponding put be worth?

• A) $3.04
• B) $4.64
• C) $6.08
• D) $3.83
• E) $0

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Definitions:

Software Firewall

A software application or tool provided with a computer or device like an access point that can be configured to permit or block specific types of traffic.

Netstat

A command that can view current network connections and the local routing table for a PC.

Ports

Physical docking points on a computer or networking device used for connecting cables and peripherals.

Intermittent

Occurring at irregular intervals; not continuous or steady, often used to describe problems or behaviors in electronic devices that happen sporadically.