Kizspy | Question: 49 (Choose 1 answer)
Assume that the stock of XYZ, Inc., is currently trading for $18 and will either rise to $24 or fall to $13 in one year. The risk-free rate for one year is 11 percent. What is the value of a call option with a strike price of $26?
A. $0
B. $5.23
C. $7.72
D. $2.00
