Question: QUESTION 36 Consider a one year call option on a stock paying no dividends. The call is currently priced at $5. The strike price of

QUESTION 36 Consider a one year call option on a stock

QUESTION 36 Consider a one year call option on a stock paying no dividends. The call is currently priced at $5. The strike price of the call is $40. The stock will either rise to $60 or fall to 50 in one year. Assuming that the one year risk free rate is zero, what is the current stock price? a) $10 O b) $15 O c) $25 d) $30

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