Use the Information Below to Answer the Following Question

question 46

Multiple Choice

Use the information below to answer the following question.
Assume a stock price of $88; risk-free rate of 4 percent per year, compounded continuously; time to maturity of five months; standard deviation of 48 percent per year; and a put and call exercise price of $85. What is the delta of the put option?

• A) −.6850
• B) −.3742
• C) −.3158
• D) −.0525
• E) −.4685

Understand the principles of equality of opportunity and non-discrimination.

Recognize the contributions of significant figures and movements to the advancement of civil rights.

Understand the historical background and consequences of immigration policies in the United States.

Comprehend key amendments and legislative acts related to civil rights and voting rights.

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Definitions:

Tax-Deductible

Expenses that can be subtracted from gross income to reduce the amount of income that is subject to tax.

Operating Cash Flows

Operating cash flows refer to the cash generated from a company's regular business operations, reflecting its ability to generate sufficient cash to maintain operations.

Capital Expenditures

Resources employed by a business to purchase, enhance, and sustain physical properties, including premises, manufacturing facilities, or apparatus.

Mature Companies

Businesses that have reached a phase where growth is no longer exponential but stabilized, usually leading to consistent dividend payouts.