14. Stock A costs $10 today and its price will be either $7.5 or $12.5 next period. Stock Bs price will be either $18.00 or $30.00 next period. If risk-free borrowing and lending are possible at 8 percent per period, neither stock pays dividends and it is possible to buy and sell fractional shares, Stock Bs no-arbitrage price today should be closest to

6

A. $19.00 B. $21.00 C. $24.00 D. $26.00 E. $25.00