The Equation $P ( a ) = 14.7 e ^ { - 0.21 a }$

question 176

Multiple Choice

The equation $P ( a ) = 14.7 e ^ { - 0.21 a }$ , where a is the altitude above sea level measured in miles, yields the atmospheric pressure in pounds per square inch. If the atmospheric pressure at Cheyenne, Wyoming, is approximately 11.57 pounds per square inch, find that city s altitude above sea level. Express your answer to the nearest hundred feet.

• A) 6,400 feet
• B) 6,000 feet
• C) 6,200 feet
• D) 5,700 feet
• E) 5,900 feet

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Definitions:

Out Of The Money

Describes an options contract that would not yield a profit if exercised at the current market level.

In The Money

Describes an option with an intrinsic value where a call option's strike price is below the market price of the underlying asset or a put option's strike price is above.

Time Value

The additional amount an investor is willing to pay for an option above its intrinsic value, based on the time remaining until its expiration.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.