The stock price of Harper Corp. is $33 today. The risk-free rate of return is 6%, and Harper Corp. pays no dividends. A put option on Harper Corp. stock with an exercise price of $30 and an expiration date 73 days from now is worth $0.95 today. A call option on Harper Corp. stock with an exercise price of $30 and the same expiration date should be worth ________ today.
A) $2.25
B) $3.14
C) $3.99
D) $4.31

Question

Quizplus · Accepted Answer

C = S₀ − Xe−rT + P; C = 33 − (30)e−^(0.06)(0.2)+ 0.95 = 4.308

The Stock Price of Harper Corp