Assume the Following Data: Stock Price = $50; Exercise Price

question 64

Multiple Choice

Assume the following data: Stock price = $50; Exercise price = $45; Risk-free rate = 6% per year; Continuously compounded variance = 0.2; Expiration = three months.Calculate the value of a European call option.(Use the Black-Scholes formula.)

• A)$7.62
• B)$7.90
• C)$5.00
• D)$5.92

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Definitions:

Optic Ataxia

A neurological condition characterized by the inability to accurately reach for objects using visual guidance, often due to damage in the parietal lobe.

Visual System

The part of the central nervous system which enables organisms to process visual detail, extending from the eye through the brain to interpret visual information.

Genitalia

The external and internal organs of reproduction in both males and females.

Differentiated

Having developed specialized cells and tissues to perform distinct functions within an organism.