Question: Upper range limit = 46/43 = 1.0698 Lower range = 42/43 = .9767 Risk neutral probability = (1.0299 (eRT) - .9767) / 1.0698 - .9767

Upper range limit = 46/43 = 1.0698 Lower range = 42/43 = .9767 Risk neutral probability = (1.0299 (eRT) - .9767) / 1.0698 - .9767 = .5714 Present value = .5714 / 1.0299 = .5551 The per share value of the one-year Koo Inc. call option with an exercise price of $45 per share is $0.5551

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