A Vertical Line Drawn Through a Normal Distribution at Z

question 74

Multiple Choice

A vertical line drawn through a normal distribution at z = -1.00 separates the distribution into two sections,the body and the tail.What proportion of the distribution is in the body?

• A)0.8413
• B)0.1587
• C)0.3413
• D)-0.1587

---

Definitions:

Put Option

An economic arrangement that offers the holder a privilege, absent any mandate, to liquidate a specified quantum of a core asset at a stipulated price throughout a fixed duration.

Expiration

The point in time when a financial contract (e.g., option, futures contract) reaches its end date and is either executed or becomes void.

Dividend

Shareholders receive a payment from a corporation, commonly as a share of the company's profits.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.