You have written a call option on 1 share of A stock that is currently worth $30.You expect the price of the stock to either move to $40 or $20 over the next year.If the one-year risk-free interest rate is 5% and the strike price on the option is $25,what should have been the proceeds of the option?
A) $15.72
B) $8.22
C) $.72
D) $0
Correct Answer:
Verified
Q45: You have written a call option on
Q46: Kenly Bennett XIV wants to short shares
Q47: An investor that writes a covered call
A)
Q48: You have written a call option on
Q49: Which of the following is issued by
Q51: The main difference between an American and
Q52: An investor that purchases a call option
Q53: A put on United Pipeline has 1
Q54: You notice that the price of a
Q55: You need to find the price of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents