What Is the Value of a 9-Month Call with a Strike

question 45

Multiple Choice

What is the value of a 9-month call with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information?
Stock price $48
Exercise price $45
Time to expiration .75
Risk-free rate .05
N(d₁) .718891
N(d₂) .641713

• A) $2.03
• B) $4.86
• C) $6.69
• D) $8.81
• E) $9.27

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Definitions:

Pay Plan-Shift Combination

A specific arrangement of compensation structures associated with different work shifts, designed to offer variable pay rates based on the timing of shifts.

SS(Total)

The total sum of squares in an analysis of variance (ANOVA), representing the total variation in the data.

SST

In statistics, refers to the total sum of squares, a measure that quantifies the total variation within a dataset.

SSB

This could refer to several things depending on context; if in statistical analysis, it might not be a standard abbreviation. NO.