What Is the Value of a 9-Month Put with a Strike

question 157

Multiple Choice

What is the value of a 9-month put with a strike price of $20 given the Black-Scholes Option Pricing Model and the following information?

• A) $3.25
• B) $3.67
• C) $3.88
• D) $4.03
• E) $4.31

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Definitions:

Movable End

A term describing an object or part of a system that is free to move or be manipulated, often used in mechanical contexts.

Skeletal Muscle

A type of striated muscle tissue which is attached to bones and is responsible for the movement of the skeleton.

Insertion

More movable attachment point of a muscle; usually, the lateral or distal end of a muscle associated with the limbs; also called mobile end.

Insertion

The location or manner in which a skeletal muscle connects to the bone or different body part that it actuates.