Exhibit 20 -Refer to Exhibit 20

question 43

Multiple Choice

Exhibit 20.6
Use the Information Below for the Following Problem(S)
The current stock price of ABC Corporation is $53.50. ABC Corporation has the following put and call option prices that expire 6 months from today. The risk-free rate of return is 5% and the expected return on the market is 11%.
$$\begin{array} { c c c } \text { Exprcisp Price } & \text { Put Price } & \text { Call Price } \\50 & \$ 1.50 & \$ 5.75 \\55 & \$ 3.25 & \ldots\end{array}$$
-Refer to Exhibit 20.6.What is the value of a synthetic stock created with put and call options that expire in 6 months with an expiration price of $50?

• A) $53.04
• B) $53.53
• C) $54.54
• D) $55.03
• E) $56.23

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Definitions:

Counseling Psychologist

A professional who helps individuals, families, and groups improve their well-being, alleviate distress, and resolve crises through psychological methods.

Direct Treatment

A type of medical or psychological intervention that is aimed specifically at addressing the underlying cause of a disease or disorder, rather than just treating the symptoms.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted, persistent thoughts (obsessions) and repetitive behaviors (compulsions) that an individual feels driven to perform.

Exposure and Response Prevention

A behavioral therapy technique often used for treating obsessive-compulsive disorder, involving exposure to the source of fear and refraining from the compulsive behavior that typically follows.