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A 4-Month,$25 Call Option on Teller Stock Has an Option

Question 3

Multiple Choice

A 4-month,$25 call option on Teller stock has an option premium of $0.25.The 4-month,$25 put option has an option premium of $0.80.The risk-free rate is 3 percent.The options are European-style.What is the price of Teller stock?


A) $24.20
B) $24.53
C) $24.62
D) $25.97
E) $26.08

Correct Answer:

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