ING Stock Currently Sells for $38

question 34

Multiple Choice

ING Stock currently sells for $38. A one-year call option with strike price of $45 sells for $9, and the risk-free interest rate is 4%. What is the price of a one-year put with strike price of $45?

• A) $9.00
• B) $12.89
• C) $16.00
• D) $18.72
• E) $14.27

Understand the concept of convex preferences and how they relate to commodity bundles and consumer preferences.

Comprehend the principles of transitivity in consumer preferences and its implications on choice.

Grasp the calculation and significance of marginal rates of substitution in indifference curves.

Analyze how different pricing affects consumer choices and the marginal rate of substitution between goods.

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Definitions:

Binge Eating Disorder

An eating disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states that control a person's behavior in different circumstances.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extremely low body weight, fear of gaining weight, and a distorted body image.

Borderline Personality

A mental health disorder characterized by pervasive instability in moods, self-image, behavior, and relationships.