Suppose S = $52

question 2

Multiple Choice

Suppose S = $52.50,K = $50,σ = 0.25,r = 0.04 and div = 0.01.What is the price of a gap option with 156 days until expiration and K₁ = $32.00?

• A) $14.00
• B) $15.00
• C) $16.00
• D) $17.00

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Definitions:

Obedience

The act of following the directives or commands from an authority figure, often studied in social psychology.

Commanding Authority

The power or right to give orders, make decisions, and enforce obedience.

Gender-Related Behavior

Actions or behaviors that are influenced by or associated with one's gender, often shaped by societal norms and expectations.

Foot-In-The-Door

A persuasion technique that involves getting a person to agree to a small request to increase the chances they will agree to a larger request later.