Approximate to Four Decimal Places

question 78

Multiple Choice

Approximate to four decimal places.

• A)0.2837
• B)0.2713
• C)0.2683
• D)0.2327
• E)0.5425

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Definitions:

Option's Intrinsic Value

The difference between the current price of the underlying asset and the strike price of an option, assuming the option is in-the-money.

Strike Value

The predetermined price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Market Value

The present cost at which a service or asset is available for purchase or sale in a free market.

Volatility Value

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.