Exhibit 22.3 Use the Information Below for the Following Problem(S)

question 22

Multiple Choice

Exhibit 22.3
Use the Information Below for the Following Problem(S)
A stock currently trades for $130 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk free rate is 3% over this time period, and the expected volatility is 0.35.
-Refer to Exhibit 22.3.Calculate the price of the put option.

• A) $1.086
• B) $0.862
• C) $6.234
• D) $0.623
• E) $2.317

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Definitions:

Social Order

The arrangement of practices and behaviors in society that maintains stability and predictability through established norms, laws, and social structures.

Resistant

The act of opposing, standing firm against, or withstanding the pressure or effect of something.

Regressive

Describing an action or policy that tends to favor the wealthy or privileged, often at the expense of the less well-off, by reducing progress made in social equality.

Religious Integration

The incorporation or blending of religious beliefs and practices into the cultural and social institutions of a society.