What Is the Put Option Premium Given the Following Information

question 66

Multiple Choice

What is the put option premium given the following information?
$\begin{array}{lrr} \text { Stock price } &\$28.00\\ \text { Strike price } &\$35.00\\ \text { Volatility } &50\%\\ \text {Dividend Yield } &0\\ \text { Time (years) } &.50\\ \text { Risk-free Rate } &3.50\%\\\end{array}$

• A)$7.49
• B)$7.98
• C)$8.28
• D)$8.76
• E)$9.64

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Definitions:

Maker

In financial terms, the party that creates or issues a promissory note or draft, committing to pay the specified amount.

Bank Statement

A record issued by a bank detailing all transactions in a depositor's account over a given period.

Depositor's Account

An account maintained by a bank or financial institution for the depositor, recording the amount of money deposited.

Account Balance

The amount of money in a financial repository at any given moment, which can include bank accounts or credit accounts.