Question: help woth question 11 and 12! will leave a like! A call option on Apple stock with an exercise price of $75 and one year
A call option on Apple stock with an exercise price of $75 and one year expiration is selling at $2.50. The stock itself is selling for $60. the risk-free rate is B%, at what price does a put option on Apple stock with an exercise price of $75 and one year expiration be selling for? $11.94 $3.00 $10.74 $2.55 Saved Question 12 (5 points) Listen ABC stock is currently selling for $120. The exercise price of the call option is $125. Using a one-period binomial model, calculate the price of the call option assuming an interest rate of 3% per year. Assume further that over the next year, the stock price will either increase by 10% or decrease by 10%. What is the price of the call option? Show detailed work leading to your answer on the answering sheet! $3.24 $4.42 $2.44 $2.34
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
