Discussion Post
• The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding)
• The exercise price on one of Chrisardan Company's call options is $20, its exercise value is $27, and its time value is $8. What are the option's market value and the price of the stock?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.