CUMULATIVE NORMAL DISTRIBUTION TABLE

question 52

Multiple Choice

CUMULATIVE NORMAL DISTRIBUTION TABLE
-Refer to the information above. A stock is currently selling for $60. The stock pays no dividends. An American call option on the stock has a strike price of $55 and has 3 months to
Expiration. The standard deviation of the continuously compounded rate of return of the stock
Is 30%, and the annualized risk-free rate is 3%. Use the Black-Scholes formula to calculate the
Fair value of this option.

• A)$7.66
• B)$6.79
• C)$7.03
• D)The Black-Scholes formula cannot be used to determine the fair value of an American call option.

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Definitions:

Nursing Assistive Personnel

Nursing Assistive Personnel (NAP) are healthcare workers who provide basic patient care under the supervision of nursing staff, assisting with activities of daily living and other tasks.

Catheterization

The process of inserting a thin tube, or catheter, into a body cavity, duct, or vessel to allow for drainage, injection of fluids, or access by surgical instruments.

Foley Catheter

A flexible tube inserted into the bladder to drain urine.

Urethral Damage

Injury or harm to the urethra, the tube that carries urine from the bladder out of the body, which can lead to difficulty in urination or urinary incontinence.