Assume a Stock Price of $21

question 59

Multiple Choice

Assume a stock price of $21.80, an exercise price of $20, three months to expiration, a risk-free rate of 3.40 percent, standard deviation of 46 percent, and a d₁ value of .52664. What is the value of d₂ as it is used in the Black-Scholes option pricing model?

• A) .31218
• B) .31225
• C) .29664
• D) .29535
• E) .31340

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Definitions:

Older Adulthood

A life stage characterized by ages 65 and older, often associated with retirement, increased leisure time, and various health considerations.

Informational

Pertains to being related to or conveying information.

Emotional Support

Assistance provided by individuals that specifically addresses the emotional needs of someone, emphasizing empathy, understanding, and care.

Elder Abuse

The mistreatment or exploitation of older individuals, which can be physical, emotional, financial, or neglectful in nature.