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
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