Use the Information for the Question(s)below

question 14

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.
-Using risk-neutral probabilities,the calculated price of a one-year call option on KD stock with a strike price of $20 is closest to:

• A)$1.45.
• B)$2.40.
• C)$2.00.
• D)$2.15.

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Definitions:

Leadership Beliefs

The core principles or assumptions held by an individual about leadership, which can influence their approach and effectiveness as a leader.

Whistleblower

An individual who exposes illegal, unethical, or improper practices within an organization, often risking their own career or wellbeing for the sake of accountability and integrity.

Financial Misconduct

Unethical or illegal actions relating to financial dealings, such as embezzlement or fraud.

Unethical Behaviour

Actions or practices that violate social norms or standards, including honesty, integrity, and fairness.