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The current price of a non-dividend payi...

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题目

The current price of a non-dividend paying stock is $75. The annual volatility of the stock is 18.25%, and the current continuously compounded risk-free interest rate is 5%. A 3-year European call option exists that has a strike price of $90. Assuming that the price of the stock will rise or fall by a proportional amount each year, and that the probability that the stock will rise in any one year is 60%, what is the value of the European call option?

选项

A.$22.16

B.$12.91

C.$3.24

D.$7.36

答案

D

解析

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