Multiple Choice
A stock is currently selling for $26.50. A 3-month put option with a strike price of $30 has an option premium of $4.05. The risk-free rate is 3% and the market rate is 9.75%. What is the option premium on a 2-month call with a $30 strike price? Assume the options are European style.
A) $0
B) $.33
C) $.41
D) $.67
E) $.77
Correct Answer:
Verified
Correct Answer:
Verified
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