The Current Price of a Stock Is $50

question 9

Multiple Choice

The current price of a stock is $50.Every month,the stock price will rise by a factor of 1.2 or fall by a factor of 0.8;and a $1 risk-free investment will be worth $1.03.A dividend as a proportion 0.01 of the stock price is paid each period.What is the price of a six-month American put option at a strike of $51?

• A)$7.51
• B)$7.91
• C)$8.11
• D)$8.51

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Definitions:

Combo Box Content Control

A user interface element in document design software that combines a text box with a list box, allowing users to select an item from a list or enter a new one.

Content Control Style

Refers to the customization and formatting of placeholders in documents that control the type of content that can be added.

Text Effect

Visual enhancements applied to text, such as shadow, glow, reflection, or 3D appearance.

Building Block

Fundamental components or units from which larger structures, systems, or concepts are constructed or organized.