Suppose ABCD's stock price is currently $50. In the next six months, it will either fall to $40 or rise 8 to $60. What is the cu

Question

2 years ago

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Suppose ABCD's stock price is currently $50. In the next six months, it will either fall to $40 or rise 8 to $60. What is the cu

rrent value of a six-month call option with an exercise price of $50? The six- month risk-free interest rate is 2% (periodic rate).
A. $5.39
B. $15.00
C. $8.25
D. $8.09

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1 answer:

ivann1987 [24] · Answer 1 · 2022-10-16T14:35:54+03:00

ivann1987 [24]2 years ago

6 0

The answer is B. $15.00