A stock with a current price of $40 will either move up to $41 or down to $39 over the next period. The risk-free rate of interest is 2.45%. What is the value of a call option with a strike price of $40?
A)$.49
B)$.68
C)$.86
D)$.97
E)$1.21

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The Answer of A stock with a current price of $40 will either move up to $41 or down to $39 over the next period. The risk-free rate of interest is 2.45%. What is the value of a call option with a strike price of $40?
A)$.49
B)$.68
C)$.86
D)$.97
E)$1.21

A Stock with a Current Price of $40 Will Either