Note: Correct Answers to Later Questions Are Dependent on Correct

question 38

Multiple Choice

Note: Correct answers to later questions are dependent on correct answers to earlier questions.
-Ima Greedy,the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The stock is currently trading at $23 a share and the options are at the money. The variance of the stock has been about .08 on an annual basis over the last several years. The options mature in 3 years and the risk free rate is 4%.
What is the value of a call option?

• A) $4.14
• B) $4.86
• C) $5.13
• D) $5.62
• E) $6.16

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Definitions:

All-Or-None Response

A neuron’s reaction of either firing (with a full-strength response) or not firing.

Neural Impulses

Electrical signals that travel along neurons, transmitting messages throughout the nervous system.

Sympathetic System

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate, dilating airways, and mobilizing energy.

Reuptake

The process by which neurotransmitters are taken back into the neurotransmitter vesicles in the nerve cells after they have been released.