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Suppose ACMEs stock price is now $23.65. In the next three months, it will rise to $75.68. If the three-month risk-free interest rate is 3.27%,
Suppose ACMEs stock price is now $23.65. In the next three months, it will rise to $75.68. If the three-month risk-free interest rate is 3.27%, the current value of a three-month put option with an exercise price of $19.25 is closest to
(Employ the risk-neutral valuation method.)
A.
$0.00.
B.
$2.02.
C.
$5.18.
D.
$8.62.
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