In a Specific Wager,Pat Is Paid $5

question 8

Multiple Choice

In a specific wager,Pat is paid $5.00 if the price of ABC Corp.is above $85.00.Currently,ABC Corp.price is $75.00,σ = 0.25,r = 0.04,div = 0 and the wager lasts 6 months.Pat is paid one share of ABC Corp.stock if the price is below $85.00.What is the value of her wager?

• A) $21.80
• B) $22.80
• C) $23.80
• D) $24.80

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Definitions:

Letters Patent

A method of incorporating used in some jurisdictions in Canada whereby the government grants recognition to the company as a separate legal entity.

Nova Scotia

A province in Canada known for its maritime heritage and coastal beauty.

General Security Agreement

A legal document that secures the repayment of a loan or debt with the borrower's assets as collateral.

Statutory Relief

Legal remedies or exemptions provided under specific statutes or laws to mitigate or avoid certain legal obligations or penalties.