Which One of the Following Situations Will Produce the Highest

question 31

Multiple Choice

Which one of the following situations will produce the highest put price, all else constant? Assume the options are all in the money.

• A)$30 stock price; 20% standard deviation
• B)$30 stock price; 25% standard deviation
• C)$35 stock price; 20% standard deviation
• D)$35 stock price; 25% standard deviation
• E)Insufficient information is provided to answer this question.

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Definitions:

Low Uncertainty Avoidance

A cultural perspective that tolerates ambiguity and uncertainty, and is more accepting of unstructured situations.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society attempt to cope with anxiety by minimizing uncertainty.

The United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Gender Egalitarianism

The belief in and practice of equal rights, responsibilities, and opportunities for individuals of all genders.