Assume That the Stock of Statrec, Inc

question 34

Multiple Choice

Assume that the stock of Statrec, Inc., is currently trading for $2.60 and will either rise to $10 or fall to $0 in one year. The risk-free rate for one year is 1 percent. What is the value of a put option with a strike price of $5? (Do not round intermediate computations. Round final answer to two decimal places.)

• A) $0
• B) $2.35
• C) $3.65
• D) $3.80

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Parcels of land granted by the government, often under conditions of residence and cultivation.

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The 17th President of the United States, who served from 1865 to 1869, known for his efforts in post-Civil War Reconstruction and conflicts with Congress.

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A person who owns slaves, historically involved in the forced labor system where individuals were owned and treated as property.