Consider a Call Option with a Strike Price of $10

question 106

Multiple Choice

Consider a call option with a strike price of $10, which expires in one year. The risk-free rate of interest is 10 percent. The current underlying stock price is $30. Without arbitrage, which of the following is a possible price for the call option? (Round intermediate computations to two decimal places.)

• A) $0
• B) $19.50
• C) $21.00
• D) $19.00

---

Definitions:

Number of Pixels

The total count of individual dots or points of light (pixels) that make up a digital image, defining its resolution.

Slide Organize

A function in presentation software that allows users to rearrange, add, or delete slides for effective sequencing and structuring of information.

PowerPoint

A presentation program developed by Microsoft, used to create slideshows composed of text, graphics, and other objects.

Design

The process of envisioning and planning the creation of objects, systems, or interactions with a focus on aesthetics, function, and usability.