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

question 28

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 European put 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:

Polypeptide

A linear organic polymer consisting of a large number of amino-acid residues bonded together in a chain, forming part of (or the whole of) a protein molecule.

Blueprint

A detailed technical drawing or plan used for the design and construction of buildings, machinery, or systems.

Protein

Large biomolecules or macromolecules that are made up of one or more chains of amino acid residues.

Ala-Gly-Lys

A tripeptide composed of alanine, glycine, and lysine amino acids, often referenced in discussions of protein structure and function.