The Whistle Stop Has a Stock Price of $17 a Share.One-Year

question 11

Multiple Choice

The Whistle Stop has a stock price of $17 a share.One-year options have a strike price of $20.The risk-free rate is 2.8 percent,the standard deviation is 29 percent,N(d₁) is 0.37492 and N(d₂) is 0.27131.What is the call price?

• A)$1.18
• B)$1.26
• C)$.77
• D)$1.37
• E)$1.10

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Definitions:

Depressed Client

A person receiving therapy or counseling services who is experiencing symptoms of depression, such as persistent sadness or loss of interest in activities.

Negative Interpretations

A cognitive distortion where an individual consistently perceives situations in a more negative light than is warranted.

Learning Perspective

A psychological approach that focuses on how people are influenced by their environment and how learning is impacted by biological, psychological, and sociocultural factors.

Abnormal Behavior

Activities or actions that diverge significantly from the norm or standard in a given culture or society, often leading to psychological distress or dysfunction.