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Delta is currently trading for $20/share, while Southwest is currently trading for $40/share; assume neither stock pays a dividend. If an option to exchange 3
Delta is currently trading for $20/share, while Southwest is currently trading for $40/share; assume neither stock pays a dividend. If an option to exchange 3 shares of Delta for a share of Southwest in 2 years currently costs at 0.5 shares of Delta stock, what would an option to exchange 1/3 share of Southwest for a share of Delta in 2 years cost in shares of Southwest?
A. 1/5 of a share
B. 1/4 of a share
C. 1/3 of a share
D. 1/2 of a share
E. 2/5 of a share
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