Kizspy | Question: 40
(Choose 1 answer)
Assume that the stock of EffeUn, Inc. is currently trading for $16 and will either rise to $18 or fall to $12 in one year. The risk-free rate for one year is 1 percent. What is the value of a put option with a strike price of $10?
A. $0
B. $2.00
C. $2.33
D. $5.00
