Question
Franklin Resources stock is currently selling for $55.00 a share but is expected to either decrease to $49.50 or increase to $60.50 a share over
Franklin Resources stock is currently selling for $55.00 a share but is expected to either decrease to $49.50 or increase to $60.50 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $55?
| $2.95 | ||
| $3.21 | ||
| $3.47 | ||
| $3.73 | ||
| $3.96 |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
