Unformatted text preview: • The risk-free rate, compounded continuously, is 5% • European options on one share of ABC stock expiring in one year have the following prices: Joan creates a zero-cost call ratio spread that will have a profit of zero if the stock price in one year is equal to 68.3. Solve for X. A) 55.70 B) 58.68 C) 57.22 D) 64.08 E) 61.34...
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- Spring '10
- English-language films, ADAPT Practice Problems