Given the Following Data, What Is the Approximate Implied Volatility

question 1

Multiple Choice

Given the following data, what is the approximate implied volatility? Assume S = $38.50, K = $40, r = .06, Call price = $1.60 the stock pays no dividend and the option expires in 45 days.

• A) 21 %
• B) 32 %
• C) 39 %
• D) 44 %

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Definitions:

Incurred

This term refers to the recognition of costs or expenses in accounting when a company commits to them through its operations, regardless of when payment is made.

Wages Payable

Represents the total amount of wages earned by employees that have not yet been paid by the employer.

Wages Expense

The total cost incurred by a company for the payment of wages to its employees during a specific period.

Adjusting Entry

Financial records prepared at the close of an accounting timeframe to attribute profits and outlays to the specific period in which they happened.