Chapter 3 Time Value of Money

What is the continuously compounded return on the stock over this time frame? A) -3.85 %. B) -4.00 %. C) -4.08 %. D) -4.16 %. Answer: C. 4) A stock is selling for $32.70. The strike price on a call, maturing in 6 months, is $35. The possible stock prices at the end of 6 months are $39.50 and $28.40. If interest rates are 6.0%, what is the ... ................
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