A Stock Is Currently Selling for $39 a Share

question 20

Multiple Choice

A stock is currently selling for $39 a share. The risk-free rate is 2.5 percent and the standard deviation is 26 percent. What is the value of d₁ of a 9-month call option with a strike price of $40?

• A) −.01506
• B) 0.08341
• C) 0.07746
• D) 0.06420
• E) −.06752

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Definitions:

Responsibilities

Duties, tasks, or obligations that an individual is expected or required to perform, often within a social, professional, or personal context.

Polygenic

A term describing a trait that is influenced by multiple genes, often resulting in a continuous range of possible phenotypes.

Environmental Conditions

The state of the external physical and biological factors that influence the growth, development, and survival of organisms.

Monogenic

In genetics, relating to a trait or disorder caused by a mutation in a single gene.