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9 The Amazon Company has a call option written on its underlying asset, common stock shares. The strike for each call option is $30. The
9 The Amazon Company has a call option written on its underlying asset, common stock shares. The strike for each call option is $30. The expiration date for each call option is in one year. The Amazon Company's shares go for $27.80 in today's marketplace. Here's what else is known: there is a generally agreed expectation that one year from now the price per share of the Amazon Company's stock will change to either $28 or $34. The Treasury bill annual rate is 5%. 4 points Based on all of the above, the Amazon Company's call options should each cost _ (HINT: Binomial!) References Multiple Choice O $.69 O $.92 O O $.89 O $.76 $.79 O $.95 O
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