Given the Following Information,what Is the Value of D₂ as It

question 59

Multiple Choice

Given the following information,what is the value of d₂ as it is used in the Black-Scholes option pricing model? $$\begin{array} { l l } \text { Stock price } & \$ 31.60 \\\text { Exercise price } & \$ 50.00 \\\text { Time to expiration } & 9 \text { months } \\\text { Risk-free rate } & 4.25 \text { percent } \\\text { Standard deviation } & 55 \text { percent } \\\mathrm { d } _ { 1 } & - \mathbf { 0 . 6 5 8 2 9 }\end{array}$$

• A)-1.1346
• B)-0.8657
• C)-0.8241
• D)-0.7427
• E)-0.7238

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Definitions:

Grouped Data

Data that is organized into intervals or groups for the purpose of analysis.

Individual Data Values

These are the specific observations or measurements collected in a study or analysis.

Descriptive Statistics

Statistical methods that summarize and organize characteristics of data sets, such as mean, median, mode, and range.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.