The common stock of the C. A.L. L. Corporation has been trading in a narrow range around $50 per share for months, and you believe it is going to stay in that range for the next three months. The price of a 3-month put option with an exercise price of $50 is $4. a. If the risk-free interest rate is 10% per year, what must be the price of a 3-month call option on C. A.L. L. stock at an exercise price of $50 if it is at the money

Price of call option =  $5.1772

Explanation:

given data

trading x = $50 per share

Current price So = $95

time = 3 month t = year

exercise price of $50, P = $4

risk-free interest rate r = 10%

solution

we use here formula from put-call parity for price of a 3-month call option on C.A.L.L. stock that is

Price of call option = P + So - \frac{x}{(1+r)^t}    .....................1

put here value and we will get

Price of call option =  $4 + $50 - \frac{50}{(1+0.10)^{1/4}}  

Price of call option =  $5.1772

answerthe united states of america;

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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