Which Excel Function Finds the Value X Such That 55 $\mu$

question 31

Multiple Choice

Which Excel function finds the value X such that 55% of the probability lies below X from a normal distribution with mean $\mu$ = 20 and standard deviation $\sigma$ = 3?

• A)NORMDIST(.55,20,3,TRUE)
• B)NORMSDIST(.55,20,3)
• C)NORMINV(.55,20,3)
• D)NORMSINV(.55,20,3)

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Definitions:

Call Premium

The additional amount over the bond's face value that must be paid to call a bond before its maturity date.

Put Contract

An options contract that gives the holder the right to sell a specified amount of an underlying security at a specified price within a specified time.

Put Premium

The price that must be paid to purchase a put option, which gives the holder the right but not the obligation to sell a specified quantity of an underlying asset at a set price within a specified time.

Maximum Profit

The highest possible financial gain achievable from an investment or business operation, often estimated under ideal conditions.