The Current Price of YBM Stock S Is $101

question 15

Multiple Choice

The current price of YBM stock S is $101.European options with a strike price K = $100 and maturing in T = 6 months trade on YBM.The continuously compounded,risk-free interest rate r is 5 percent per year.A dividend of $1.10 is paid out after three months.If the put price p is $4.03,the call price c is:

• A) $5.25
• B) $6.41
• C) $7
• D) $7.49
• E) None of these answers are correct.

---

Definitions:

Mutually Beneficial

A situation or agreement that provides advantages to all parties involved.

Promotional Allowances

Financial incentives provided to retailers or distributors to support the marketing and sales of a product.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically summarized as product, price, place, and promotion.

Promotional Allowances

Financial incentives provided to retailers or distributors by manufacturers or service providers to push additional sales of a product or service.