The Current Price of a Stock Is $100

question 3

Multiple Choice

The current price of a stock is $100. What is the Black-Scholes model price of a six-month call option at strike $101, given an interest rate of 2% and a dividend rate of 1%? The volatility is 25%.

• A) $6.30
• B) $6.52
• C) $6.56
• D) $6.78

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Definitions:

Use Of Violence

The intentional application of force to harm, intimidate, or control others.

Joyriding

The act of driving a vehicle without the owner's permission, typically done for thrill or enjoyment, rather than for the purpose of committing a theft.

Commit Another Crime

The action of engaging in illegal activities or offenses after previously offending.

Auto Thieves Arrested

The apprehension by law enforcement of individuals accused of stealing automobiles, typically leading to legal prosecution.