One of Modular Products (MP)customers would like to obtain a 6-month option to purchase 500,000 tables for $119 each.These tables currently sell for $110 each.Assume u equals 1.0994 and d equals .9096.What price should MP charge for this option if the annual risk-free rate is 3.2 percent? Round your answer to the nearest $100.
A)$338,400
B)$421,900
C)$598,100
D)$479,900
E)$533,600

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The Answer of One of Modular Products (MP)customers would like to obtain a 6-month option to purchase 500,000 tables for $119 each.These tables currently sell for $110 each.Assume u equals 1.0994 and d equals .9096.What price should MP charge for this option if the annual risk-free rate is 3.2 percent? Round your answer to the nearest $100.
A)$338,400
B)$421,900
C)$598,100
D)$479,900
E)$533,600

One of Modular Products (MP)customers Would Like to Obtain a 6-Month