Assume S = $60,K = $65,σ = 0

question 5

Multiple Choice

Assume S = $60,K = $65,σ = 0.15,r = 0.05,T - t = 122 days,div = 0.015,and a jump probability = 0.003.What is the value of a call?

• A) $0.67
• B) $1.67
• C) $2.67
• D) $3.67

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Definitions:

Triple Covalent

A type of chemical bond where three pairs of electrons are shared between two atoms.

Polar Covalent

A type of chemical bond where a pair of electrons is unequally shared between two atoms, causing a partial charge.

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, and other components essential for cell structure and function.

Phospholipids

A type of lipid molecule that is a major component of all cell membranes, consisting of a phosphate head and two fatty acid tails.