Lapel Inc stock price is $32.00. Joe bets Sarah that the price will be above $35.00 in 6 months (180 days). The standard deviation of the stock is 0.25 and the risk free interest rate is 5.0%

If Joe wins the bet, he wishes to be paid with one share of stock. What is the value of the wager to Joe?
A) $3.00
B) $9.65
C) $12.44
D) $19.58

C

Business

You might also like to view...

Jessica works from her home via her computer, which is linked to her office. This is an example of

a. telework. b. job sharing. c. job enlargement. d. flextime. e. job rotation.

Business

With high concern for self and low concern for others, the "obliging conflict style" attempts to attain personal objectives and often ignores the needs of others, forcing win-lose situations

Indicate whether the statement is true or false

Business