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The 3-Month Options on XYZ Stock Have a Strike Price

Question 78

Multiple Choice

The 3-month options on XYZ stock have a strike price of $35 while the stock price is $43.The risk-free rate is 3.15 percent,the standard deviation is 27 percent,N(d1) is 0.95060 and N(d2) is 0.93520.What is the call price?


A) $4.14
B) $4.72
C) $8.40
D) $6.56
E) $5.64

Correct Answer:

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