You have written a call option on 1 share of Z stock that is currently worth $15.You expect the price of the stock to either move to $20 or $10 over the next year.If the one-year risk-free interest rate is 10% and the strike price on the option is $15,what should have been the proceeds of the option?
A) $5.45
B) $2.95
C) $.45
D) $0
Correct Answer:
Verified
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