In the case of a 1-year option, the current stock price is $52 per share. If the stock price has an equal chance of ending the year at either $58 or $45, what is the ? given an interest rate of 6.0% and an exercise price of $50?
A)
0.2145
B)
0.3254
C)
0.5411
D)
0.6154
Answer:
D
Business
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