A 1-Month $25 Call Option on BRU Stock Is Priced

question 47

Multiple Choice

A 1-month $25 call option on BRU stock is priced at $3.22 while the 1-month $30 put option is priced at $2.05.Which one of these is the best estimate of the current price of one share of BRU stock?

• A)$27.50
• B)$28.00
• C)$28.50
• D)$26.50
• E)$30.00

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Definitions:

Binary Numbers

A base-2 numeral system that uses only two symbols, typically 0 and 1, representing values using two different states.

Decimal Numbers

Numbers expressed in base 10, utilizing digits 0 through 9 for representing quantities.

Bits

The smallest unit of data in computing represented by a binary digit, either 0 or 1, used to encode digital information.