Use the Information for the Question(s)below

question 37

Multiple Choice

Use the information for the question(s) below.
The current price of KD Industries stock is $20.In the next year the stock price will either go up by 20% or go down by 20%.KD pays no dividends.The one-year risk-free rate is 5% and will remain constant.
-Using the binomial pricing model,the calculated price of a one-year call option on KD stock with a strike price of $20 is closest to:

• A)$2.40.
• B)$2.00.
• C)$2.15.
• D)$1.45.

Know the conditions required for the application of ANOVA.

Distinguish between the use of ANOVA and other statistical tests for comparing population means.

Understand the physical and psychological effects of stress and depression.

Recognize the role of Type A and Type B personalities in health risks, especially heart disease.

---

Definitions:

Empathy-altruism Hypothesis

The idea that empathic concern for another person creates a genuine selfless motivation to help that individual.

Mononucleosis

An infectious disease, often called "mono," characterized by fever, sore throat, and swollen glands, commonly caused by the Epstein-Barr virus.

In-group

A social group to which a person psychologically identifies as being a member, often leading to favoritism toward group members and discrimination against non-members.

Primary Emotions

Basic emotions experienced by humans, such as happiness, sadness, fear, and anger, that are universal across cultures.