Use the Table for the Question(s)below

question 44

Multiple Choice

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-Assume it is now January of 2007 and the current risk-free interest rate is 1%.Using Put-Call Parity and the January 30 option (ask price) ,estimate the relative contribution of the near-term dividends to the value of Merck's stock.

• A)$0.54
• B)$2.35
• C)$4.30
• D)$20.19

---

Definitions:

Closing Section

The final part of a document or communication that summarizes the content and may offer next steps or a call to action.

Business Report

A formal document that presents information and analysis to assist in decision-making within a business context.

Key Points

The most important or central ideas, facts, or pieces of information relating to a topic or discussion.

Methods and Approaches

Methods and approaches refer to the systematic techniques and strategies used to achieve a specific goal or solve a problem.