What is the per share price of the underlying stock

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Reference no: EM132019059

1. The 1-year $45 options on Logan stock are priced at $2.51 for the call and $1.58 for the put. The annual risk-free rate is 2.0 percent. What is the per share price of the underlying stock?

a $45.05

b $38.27

c $44.03

d $50.18

e $54.72

2. Concord's stock is currently selling for $40.00 a share but is expected to decrease to either $36 or $44 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $40?

a $0.98

b $1.73

c $2.52

d $0.56

e $3.10 5 points

Reference no: EM132019059

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