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The current price of a stock is $10, and...

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题目

The current price of a stock is $10, and it is known that at the end of three (3) months the stock's price will be either $13 or $7. The risk-free rate is 4% per annum. What is the implied no arbitrage price of a three-month (T = 0.25) European call option on the stock with a strike price of $10? (Note: this does not include an assumption about the stock's volatility).

选项

A.$0.97

B.$1.28

C.$1.53

D.$1.65

答案

C

解析

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