HighFlyer Stock Currently Sells for $48

question 15

Multiple Choice

HighFlyer Stock currently sells for $48.A one-year call option with strike price of $55 sells for $9, and the risk-free interest rate is 6%.What is the price of a one-year put with strike price of $55?

• A)$9.00
• B)$12.89
• C)$16.00
• D)$18.72

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Definitions:

Revised Model Business Corporation Act

An updated model statue designed to serve as a comprehensive guide for the structuring and governance of corporations in the United States.

Fiduciary Duty of Care

A legal obligation of one party to act in the best interest of another when entrusted with the care of their assets or interests.

Stock Subscription Agreement

A legal contract outlining the purchase of shares in a company by investors under specific terms and conditions.

Watered Stock

Stock that is issued to individuals below its fair market value.