1 the 1-year 45 options on logan stock are priced at 251, Ask an Expert

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1. The 1-year $45 options on Logan stock are priced at $2.51 for the call and $1.58 for the put. The annual risk-free rate is 2.0 percent. What is the per share price of the underlying stock?

a $45.05

b $38.27

c $44.03

d $50.18

e $54.72

2. Concord's stock is currently selling for $40.00 a share but is expected to decrease to either $36 or $44 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $40?

a $0.98

b $1.73

c $2.52

d $0.56

e $3.10 5 points

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92856707

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