Tru-U Stock Is Selling for $36 a Share

question 49

Multiple Choice

Tru-U stock is selling for $36 a share. A 3-month call on Tru-U stock with a strike price of $40 is priced at $1. Risk-free assets are currently returning 0.25% per month. What is the price of a 3-month put on Tru-U stock with a strike price of $40?

• A) $2.98
• B) $3.00
• C) $4.03
• D) $4.70
• E) $4.90

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