Kizspy | Question: 45 (Choose 1 answer)
Assume that the stock of Unmix, Inc., is currently trading for $22 and will either rise to $31 or fall to $18 in one year. Assume the risk-free rate for one year is 0 percent. What is the value of a put option with a strike price of $25? (Round the final answer to two decimal places.)
A. $0
B. $1.85
C. $3.00
D. $4.85
