Kizspy | Question: 22
(Choose 1 answer)
(24991) A stock is selling for $41.60. The strike price on a call, maturing in 6 months, is $45. The possible stock prices at the end of 6 months are $35.00 and $49.00. Interest rates are 5.0%. Given an under-priced option, what are the short sale proceeds in an arbitrage strategy?
A. $6.36
B. $8.22
C. $10.43
D. $11.89
