c con xc Apon x 6 Asto x c39) X o Gett x c Geti xe Geet x Jassessment/take/launch.jsp?course assessment_id=_12917_18 course_id =_28701_1&content_id=_426827_1&step=null Path: P Words: 0 QUESTION 4 10 A stock currently has a market value of $10. The risk-free rate of return is 3% In one year, the stock is expected to sell for either $14 or $9. a) What is the value of a twelve-month call option with a strike price of $ 122 (6 points) b) If the twelve-month call option is traded at $1.2 Recommend a riskless strategy by showing the positions in both shares and calls (4 points) TT T Arial 3 (12pt) TE V Path: P Words:0 4 Click Save and Submit to save and submit. Click Save All Answers to save all answers, c con xc Apon x 6 Asto x c39) X o Gett x c Geti xe Geet x Jassessment/take/launch.jsp?course assessment_id=_12917_18 course_id =_28701_1&content_id=_426827_1&step=null Path: P Words: 0 QUESTION 4 10 A stock currently has a market value of $10. The risk-free rate of return is 3% In one year, the stock is expected to sell for either $14 or $9. a) What is the value of a twelve-month call option with a strike price of $ 122 (6 points) b) If the twelve-month call option is traded at $1.2 Recommend a riskless strategy by showing the positions in both shares and calls (4 points) TT T Arial 3 (12pt) TE V Path: P Words:0 4 Click Save and Submit to save and submit. Click Save All Answers to save all answers