What Is the Value of a 6-Month Put with a Strike

question 69

Multiple Choice

What is the value of a 6-month put with a strike price of $27.50 given the Black-Scholes option pricing model and the following information?

• A)$6.71
• B)$6.88
• C)$7.24
• D)$7.38
• E)$7.62

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Definitions:

Hertz

In the International System of Units (SI), frequency is measured in a unit described as one cycle occurring every second.

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.

Taste Receptors

specialized sensory cells located on the tongue and other parts of the mouth, responsible for detecting and responding to tastes such as sweet, salty, bitter, sour, and umami.

Papillae

Small raised projections on the tongue that contain taste buds, responsible for the sensation of taste.