What Is the Value of a 3-Month Put with a Strike

question 398

Multiple Choice

What is the value of a 3-month put with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information?

• A) $3.23
• B) $3.40
• C) $3.61
• D) $4.03
• E) $4.22

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Definitions:

MAOIs

A class of antidepressant drugs that work by inhibiting the action of monoamine oxidase, an enzyme that breaks down neurotransmitters in the brain.

STEPPS

Systems Training for Emotional Predictability and Problem Solving, a group therapy program designed for individuals with borderline personality disorder or emotional regulation problems.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships, featuring impulsivity and a chronic sense of emptiness.

Amygdala

A region of the brain involved in experiencing emotions, particularly fear and pleasure, and plays a significant role in processing emotional reactions.