The Current Price of a Non-Dividend-Paying Stock Is $30

question 9

Multiple Choice

The current price of a non-dividend-paying stock is $30.Over the next six months it is expected to rise to $36 or fall to $26.Assume the risk-free rate is zero.An investor sells call options with a strike price of $32.What is the value of each call option?

• A) $1.6
• B) $2.0
• C) $2.4
• D) $3.0

---

Definitions:

Language Acquisition Support System (LASS)

Bruner’s term for the patterned behaviors and formatted events within which children acquire language. It is the environmental complement to the innate, biologically constituted LAD.

Innate Biological Mechanism

A natural or inherent process within living organisms that contributes to the regulation of biological functions from birth.

Vocabulary

The set of words known and used by a person in a particular language.

Inner Speech

According to Vygotsky, the internalization of egocentric speech that occurs during early childhood and allows individuals to mentally plan activities and solve problems.