Question
The price of Mancell stock, which pays no dividends, is $83 and the strike price of a 9-month European call option on the stock is
The price of Mancell stock, which pays no dividends, is $83 and the strike price of a 9-month European call option on the stock is $75. The risk-free rate is 5%. What is the lower bound for the option?
| A. | $10.8 | |
| B. | $8.0 | |
| C. | $11.3 | |
| D. | $8.5 |
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
