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

question 22

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,at-the-money call option on Taggart stock is closest to:

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

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Definitions:

Query Datasheet

A structured layout for displaying the results of a query from a database, where data is organized in rows and columns.

Statistics

The science of collecting, analyzing, presenting, and interpreting data.

Top Values Query

In database or spreadsheet applications, it refers to a query designed to return the highest-ranking or leading values from a set of data based on specified criteria.

Highest Values

The top or maximum numbers within a set of data or numerical entries.