What Is the Value of a 3-Month Put with a Strike

question 1

Multiple Choice

What is the value of a 3-month put with a strike price of $45 given the Black-Scholes option pricing model and the following information?

• A)$0.57
• B)$0.63
• C)$0.91
• D)$1.36
• E)$1.54

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Definitions:

Deep Brain Stimulation

A neurosurgical procedure involving the implantation of a medical device called a neurostimulator, which sends electrical impulses to specific targets in the brain for the treatment of movement and neuropsychiatric disorders.

Transcranial Magnetic Stimulation

A non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain to treat depression and other disorders.

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the person feels driven to perform.

Fear Hierarchy

A list of fears, arranged from least to most intense, used in therapies such as systematic desensitization to help individuals overcome phobias and anxiety disorders.