Given the Following Data: Stock Price = $50; Exercise Price

question 22

Multiple Choice

Given the following data: Stock price = $50; Exercise price = $45; Risk-free rate = 6%; variance = 0.2 ; Expiration = 3 months. Calculate value of a European call option: [Use Black-Scholes Formula]

• A) $7.62
• B) $7.90
• C) $5.00
• D) none of the above

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Definitions:

Economic Development

The process of improving the economic well-being and quality of life for a community or country by creating and retaining jobs and supporting or growing incomes.

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Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, ecosystems, and genetic variations.

Socio-Economic Development

The process of enhancing the economic and social well-being of a community or region, typically through improvements in education, healthcare, and infrastructure.