Lapel Inc.stock price is $32.00.Joe bets Sarah that the price will be above $35.00 in 6 months (180 days) .The standard deviation of the stock is 0.25 and the risk free interest rate is 5.0%.If Joe wins the bet,he wishes to be paid with one share of stock.If Sarah agrees to the bet,what is the value of her wager?
A) $3.00
B) $9.65
C) $12.44
D) $19.58
Correct Answer:
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