Use the Information for the Question(s)below

question 41

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.
-Assuming the Beta on KD stock is 1.1,the calculated beta for a one-year call option on KD stock with a strike price of $20 is closest to:

• A)-1.8.
• B)2.4.
• C)-7.7.
• D)4.6.

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Definitions:

Cultigens

Plants that have been deliberately altered or selected by humans for cultivation, often different from their wild ancestors.

Seed Crop

Plants that are grown primarily for the purpose of producing seeds for planting new crops, rather than for immediate consumption.

Food Production

The process of creating food products through farming, ranching, and fisheries, including preparation and packaging.

Food Foraging

The practice of gathering wild food resources, including plants, fungi, and animals, primarily as a means of subsistence.