A stock price is currently $43 . It is known that at the end of one month it will be either $45 or $41 . The risk-free interest rate is 7% per annum with continuous compounding. What is the value of a one-month European call option with a strike price of $42

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Q: None

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.