The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.

The stock price was 113.25. The risk-free rates were 7.30 percent (November), 7.50 percent (December) and 7.62 percent (January). The times to expiration were 0.0384 (November), 0.1342 (December), and 0.211 (January). Assume no dividends unless indicated.
-Suppose the stock is about to go ex-dividend in one day.The dividend will be $4.00.Which of the following calls will you consider for exercise?
A)November 115
B)November 110
C)December 115
D)all of the above
E)none of the above

Question

The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.

The stock price was 113.25. The risk-free rates were 7.30 percent (November), 7.50 percent (December) and 7.62 percent (January). The times to expiration were 0.0384 (November), 0.1342 (December), and 0.211 (January). Assume no dividends unless indicated.
-Suppose the stock is about to go ex-dividend in one day.The dividend will be $4.00.Which of the following calls will you consider for exercise?
A)November 115 
B)November 110 
C)December 115 
D)all of the above 
E)none of the above

Quizplus · Accepted Answer

The Answer of The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.

The stock price was 113.25. The risk-free rates were 7.30 percent (November), 7.50 percent (December) and 7.62 percent (January). The times to expiration were 0.0384 (November), 0.1342 (December), and 0.211 (January). Assume no dividends unless indicated.
-Suppose the stock is about to go ex-dividend in one day.The dividend will be $4.00.Which of the following calls will you consider for exercise?
A)November 115 
B)November 110 
C)December 115 
D)all of the above 
E)none of the above

The Following Quotes Were Observed for Options on a Given