The price of a stock today is $100. next year, the stock price will be either $120 or $90. the risk-free rate is 3% per year. what the the price of a put option with strike price $98
a. the put option price is $4.00
b. the put option price is $4.23
c. the put option price is $4.40
d. not enough information to tell
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The price of a stock today is $100. next year, the stock price will be either $120 or $90. the risk-free rate is 3% per year. what the the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If the market rate of interest is 6 percent, what is the present discounted value of $1,000 that will be paid in
Answers (1)
If you were asked to provide a "ballpark estimate" of global atmospheric co2 concentrations at the beginning of the industrial revolution (1750-1850), you would choose:
Answers (1)
Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC) ? 6.63% 6.98% 7.35% 7.74% 8.12%
Answers (1)
What is the easiest way to define demographic? a. What people do b. Who people are c. Where people live d. How much people make
Answers (1)
The function of media advertising is to support the economy, provide information about products, and underwrite media costs associated with
Answers (1)
New Questions in Business
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income.
Answers (1)
Which of the following is true regarding the high-tech industry today? a. It generally depends on a pool of low-skilled labor. b. It has led to the increased economic development of previously rural areas. c.
Answers (1)
Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. -Sold merchandise on account for $64,000 to a customer.
Answers (1)
Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Friday.
Answers (1)
Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.
Answers (1)