A Stock Is Currently Selling for $56 a Share

question 22

Multiple Choice

A stock is currently selling for $56 a share.The risk-free rate is 3 percent and the standard deviation is 18 percent.What is the value of d1 of a 9-month call option with a strike price of $57.50?

• A)-0.01506
• B)0.05271
• C)0.05740
• D)0.06420
• E)0.06752

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Definitions:

Preeclampsia

A pregnancy complication characterized by high blood pressure and often signs of damage to another organ system, most often the liver and kidneys.

Filtration Membrane

A barrier in the kidneys that filters blood, selectively allowing waste products and excess substances to pass into the urine.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and water balance in the body.