The Current Price of a Non-Dividend Paying Stock Is $50

question 19

Multiple Choice

The current price of a non-dividend paying stock is $50.Use a two-step tree to value an American put option on the stock with a strike price of $48 that expires in 12 months.Each step is 6 months,the risk free rate is 5% per annum,and the volatility is 20%.Which of the following is the option price?

• A) $1.95
• B) $2.00
• C) $2.05
• D) $2.10

Understand the concept that deviance is attributed to the individual rather than the act.

Recognize perspectives considering deviance as an intrinsic, objective fact.

Analyze potential biases in sociological studies on deviant behavior.

Understand perspectives that consider the individual's background in evaluating deviance.

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Definitions:

Molecule

The smallest unit of a chemical compound that can exist; composed of two or more atoms bonded together.

Genome

The complete set of genes or genetic material present in a cell or organism.

Adoption Studies

Research studies that compare adopted children to their adoptive families and biological families to understand the influence of genetic versus environmental factors on human development.

Genes

Segments of DNA located on chromosomes that carry the instructions for the development, functioning, growth, and reproduction of organisms.