Exhibit 20 -Refer to Exhibit 20

question 43

Multiple Choice

Exhibit 20.6
Use the Information Below for the Following Problem(S)
The current stock price of ABC Corporation is $53.50. ABC Corporation has the following put and call option prices that expire 6 months from today. The risk-free rate of return is 5% and the expected return on the market is 11%.
$$\begin{array} { c c c } \text { Exprcisp Price } & \text { Put Price } & \text { Call Price } \\50 & \$ 1.50 & \$ 5.75 \\55 & \$ 3.25 & \ldots\end{array}$$
-Refer to Exhibit 20.6.What is the value of a synthetic stock created with put and call options that expire in 6 months with an expiration price of $50?

• A) $53.04
• B) $53.53
• C) $54.54
• D) $55.03
• E) $56.23

---

Definitions:

Genetic Component

The part of a trait, behavior, or condition that is influenced by genes inherited from one's parents.

Non Human Animals

This term refers to all animal species that are not human, highlighting the diversity of the animal kingdom.

Evolutionary Psychology

The study of how human psychology adapts through evolutionary processes to solve problems of survival and reproduction.

Altruistic Acts

Behaviors motivated by the desire to benefit others, without expectation of reward.