Using the Following Information, Find the Price of the Put

question 6

Multiple Choice

Using the following information, find the price of the put option:
Stock price S_t=$55, interest rate I=5%,
Strike price X=$53, Call premium=$3, Maturity: T=3 months

• A)$0.47
• B)$0.62
• C)$3.47
• D)$0.35

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Definitions:

Projection

In psychology, a defense mechanism in which an individual ascribes their own unacceptable thoughts, feelings, or motives to another person. In business, it often refers to the estimation or forecasting of future trends based on current data.

Impression Management

Strategies individuals or organizations use to influence the perceptions of others, often to appear more favorable or competent.

Personal Attributes

Characteristics or qualities that define an individual's personality and behavior.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behaviour.