Consider a stock that is trading at $50,has a volatility of 0.5,and pays no dividends.The risk-free rate is 4%.If the beta of the stock is 1.1,what is the beta of a 52-strike,one-year call option on this stock?
A)0.55
B)1.1
C)3.3
D)4.4

Name: Consider a stock that is trading at $50,has a volatility of 0.5,and pays no dividends.The risk-free rate is 4%.If the beta of the stock is 1.1,what is the beta of a 52-strike,one-year call option on this stock? A)0.55 B)1.1 C)3.3 D)4.4
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The Answer is C

Consider a Stock That Is Trading at $50,has a Volatility