Question 8 (8.33 points) What is the price of a $42.5 strike call? Assume S...
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Question 8 (8.33 points) What is the price of a $42.5 strike call? Assume S = $38, o = 0.35(continuously compounded annual rate), r = 0.04(continuously compounded annual rate), the stock pays a 1.25% continuous dividend and the option expires in 120 days? (Use 360 days as one-year convention.) O $2.83 O $1.54 O $5.01 O $4.37
Question 8 (8.33 points) What is the price of a $42.5 strike call? Assume S = $38, o = 0.35(continuously compounded annual rate), r = 0.04(continuously compounded annual rate), the stock pays a 1.25% continuous dividend and the option expires in 120 days? (Use 360 days as one-year convention.)
O $2.83
O $1.54
O $5.01
O $4.37
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