What Is the Price of a $60 Strike Put? Assume

question 23

Multiple Choice

What is the price of a $60 strike put? Assume S = $63.75,σ = 0.20,r = 0.055,the stock pays no dividend and the option expires in 50 days?

• A) $0.66
• B) $0.55
• C) $0.44
• D) $0.33

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Definitions:

Overprotective

Excessively protective; beyond what is normal or necessary.

Critical

Involving serious analysis or evaluation, often referring to a moment or situation of great importance or a way of thinking that involves careful judgment.

Quiet

Marked by little or no sound, reflecting a state of calmness, stillness, or the absence of disturbance.

Less Cautious

Characterized by a diminished level of carefulness, vigilance, or prudence, potentially leading to increased risk-taking behavior.