Exhibit 22.3 Use the Information Below for the Following Problem(S)

question 22

Multiple Choice

Exhibit 22.3
Use the Information Below for the Following Problem(S)
A stock currently trades for $130 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk free rate is 3% over this time period, and the expected volatility is 0.35.
-Refer to Exhibit 22.3.Calculate the price of the put option.

• A) $1.086
• B) $0.862
• C) $6.234
• D) $0.623
• E) $2.317

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Definitions:

Cerumen

A wax-like substance produced by glands in the ear canal; also called earwax.

Pruritus

This term refers to severe itching of the skin, which can be a symptom of various conditions, including dermatological diseases, allergic reactions, and systemic diseases.

Vertigo

Dizziness.

Presbycusis

Age-related hearing loss, typically occurring in both ears, slowly progressing as a person ages.