Solved

You Have Written a Call Option on 1 Share of Z

Question 45

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents