The Stock Price Is $30

question 4

Multiple Choice

The stock price is $30.The strike price of a three-month European put option is $32.If the put option is priced at $5,and the risk-free rate of interest is 2%,and the stock pays no dividends,then the insurance value of the option is

• A)1.84
• B)2.00
• C)3.16
• D)4.96

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Definitions:

Frederick Taylor

Known as the father of scientific management, he proposed optimizing work by scientifically studying workflow processes.

Teamwork

Collaboration and cooperative effort by a group of people to achieve a common goal, often emphasized as a key factor in organizational success.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which they seek in a pre-determined order.

Physiological

Pertaining to the branch of biology that deals with the normal functions of living organisms and their parts, including the physical and chemical processes involved.