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The current prices of stocks LEFT and HOOK are $100 and $200, respectively. The continuous dividend yields of LEFT and HOOK are 5% and 3%,
The current prices of stocks LEFT and HOOK are $100 and $200, respectively. The continuous dividend yields of LEFT and HOOK are 5% and 3%, respectively, and the continuous risk-free rate is 2%. The option to exchange five HOOKs to receive ten LEFTs in six months costs $10. What is the price of the option to exchange two LEFTs to receive one HOOK in six months?
A. $2.07
B. $2.95
C. $3.44
D. $3.96
E. $4.78
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