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

question 39

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 Δ of a one-year,at-the-money put option on Taggart stock is closest to:

• A)-0.2850.
• B)0.2850.
• C)-0.3859.
• D)-0.6141.

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Definitions:

Nondegradable Pollutants

Substances that do not break down naturally in the environment and can accumulate and cause harm over time.

Emissions Tax

A tax imposed on companies for the amount of greenhouse gases they emit into the atmosphere.

Tradable Emissions Permit

A market-based instrument that provides economic incentives for reducing the emissions of pollutants.

Environmental Standard

Regulations and criteria set by authorities aimed at protecting the environment by controlling pollution levels and promoting sustainable practices.