Use the Following Information to Answer the Question(s)below

question 24

Multiple Choice

Use the following information to answer the question(s) below.
(Please use a copy of the Cumulative Probabilities for the standard normal distribution for these problems. )
Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share.Taggart pays no dividends.The risk-free interest rate is 4%.
-The Black-Scholes value of a one-year call option on Taggart stock with a strike price of $50 is closest to:

• A)$1.45.
• B)$3.15.
• C)$4.75.
• D)$9.50.

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Definitions:

Working Memory

An intellectual framework tasked with holding data for a short duration, operating under a constrained capacity for data manipulation.

Massed Practice

A learning strategy that involves intensive, uninterrupted study or practice sessions.

Distributed Practice

A learning strategy that involves spreading study sessions and practice over time, shown to improve retention and acquisition of knowledge.

Interference

A cognitive phenomenon where previously learned information hinders the ability to learn new information or vice versa.