Consider a One-Period Binomial Model of 12 Months

question 16

Multiple Choice

Consider a one-period binomial model of 12 months.Assume the stock price is $54.00,σ = 0.25,r = 0.04 and the exercise price of a call option is $55.What is the forecasted price of the stock given an upward movement during the year?

• A) $56.16
• B) $61.01
• C) $65.12
• D) $72.16

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Definitions:

Discrimination

The unfair or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Prejudice

Preconceived opinion that is not based on reason or actual experience; often directed against people or a group based on their characteristics.

Stereotypes

Overgeneralized beliefs about a particular category of people, assuming that all members of that category share the same characteristics.

Civil Rights Act

A landmark piece of federal legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin, primarily enacted in 1964.