What Is the Put Option Premium Given the Following Information

question 35

Multiple Choice

What is the put option premium given the following information?
$$\begin{array} { l l } \text { Stack price } & \$ 26 \\\text { Strike price } & \$ 30 \\\text { Standard deviation } &35\%\\\text { Rigk-free rate }&1.3\% \\\text { Dividend yield } &0\%\\\text { Time (years) }&.25\end{array}$$

• A)$3.62
• B)$4.27
• C)$4.49
• D)$4.69
• E)$5.08

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Definitions:

Perceptual Categorizations

The process by which the brain groups sensory inputs into recognizable categories.

Nativist Philosopher

An individual who theorizes that certain skills or abilities are innate and not acquired through learning.

Immanuel Kant

An 18th-century German philosopher who made significant contributions to various areas of philosophy, especially in epistemology, ethics, and aesthetics.

Innate Categories

Fundamental classifications or concepts that are presumed to be naturally pre-existing in the human mind.