Suppose VS's Stock Price Is Currently $20

question 14

Multiple Choice

Suppose VS's stock price is currently $20.In the next six months it will either fall to $10 or rise to $30.What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% per six-month period.

• A)$5.00
• B)$2.14
• C)$0.86
• D)$7.86

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Definitions:

Abdominopelvic Regions

An anatomical term referring to the regions of the body where the abdomen and pelvic cavities are located, often used to describe pain or injuries in these areas.

Transtubercular Plane

An imaginary horizontal plane that passes through the iliac tubercles and the lumbar vertebrae, often used as a landmark in anatomical studies and medical procedures.

Umbilicus

The umbilicus, commonly known as the belly button, is the scar on the abdomen where the umbilical cord was attached in the womb, located in the umbilical region.

Inferior to Hips

Refers to a position or structure located below the level of the hips in the human body.