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

question 19

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%.
-Which of the following is NOT an input required by the Black-Scholes option pricing model?

• A)The expected volatility of the stock
• B)The expected return on the stock
• C)The risk-free interest rate
• D)The current stock price

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Definitions:

Printing Press

A mechanical device for applying pressure to an inked surface resting upon a print medium, thereby transferring the ink, historically crucial in the development and spread of literature and education.

Capitalism

An economic system based on private ownership of the means of production and the creation of goods and services for profit.

Mass Media

Various means of communication, such as television, newspapers, and the Internet, that reach large audiences simultaneously and influence societal opinions and behaviors.

Functionalism

A theoretical framework in sociology and anthropology that explains social institutions and structures by their societal functions.