The current price of TSY Inc is $75 In one year, the price could be either $50 or $100 The risk free rate is 5 percent per year Construct a portfolio with the same payoff as a call option What is the most you would pay for a call on TSY Inc with a strike price of $90 ...

The necessary information about the cash flows to the different strategie ...

The current price of TSY Inc. is $75. In one year, the price could be either $50

Question:

The current price of TSY Inc. is $75. In one year, the price could be either $50 or $100. The risk-free rate is 5 percent per year. Construct a with the same payoff as a call option. What is the most you would pay for a call on TSY Inc. with a of $90?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...