A Binary Option Pays Off $100 If a Non-Dividend-Paying Stock

question 19

Multiple Choice

A binary option pays off $100 if a non-dividend-paying stock price is greater than its current value in three months.The risk-free rate is 3% and the volatility is 40%.Which of the following is its value?

• A) 99.25N(-0.1375)
• B) 99.25N(0.1375)
• C) 99.25N(-0.0625)
• D) 99.25N(0.0625)

Understand personality type preferences and their impact on team dynamics and project management according to the Myers-Briggs Type Indicator (MBTI).

Recognize different conflict resolution strategies used by project managers.

Appreciate the principles of negotiation and their application in project management.

Understand the concepts of credibility, trust, and their importance in project management communication.

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Definitions:

Payrise

An increase in the amount of money earned for work performed, typically expressed as a percentage of current salary.

Promotion

The advancement of an employee's rank or position in an organizational hierarchy.

Self-Discrepancy Theory

A theory that explores how differences between one's actual, ideal, and ought selves affect emotional states.

Self-Schemas

Cognitive representations of ourselves that help to organize and guide the processing of self-relevant information.