The common stock of Winsson, Inc. is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4%. What is the value of one call option on Winsson stock with an exercise price of $55? a)$.39 b)$.41 c)$.45 d)$.48 e)$.51

633 views
0

The common stock of Winsson, Inc. is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4%. What is the value of one call option on Winsson stock with an exercise price of $55? a)$.39 b)$.41 c)$.45 d)$.48 e)$.51

0

Aswer :

D) $ .48

stock of Winsson, Inc. is currently priced at $52.50 a share

stock price is expected to be either $54 or $60 a share one year later

.The risk-free rate of return is 4%.

By using all the information if we calculate option on winsson stock the answer will be $ .48

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved