What Is the Put Option Premium Given the Following Information

question 25

Multiple Choice

What is the put option premium given the following information?

• A)$1.58
• B)$2.01
• C)$2.59
• D)$3.63
• E)$4.15

---

Definitions:

Tractor

A tractor is a powerful motor vehicle designed for agricultural use, often used to pull farm equipment and haul goods.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for individual or small-number passenger transport.

Terms of Trade

The ratio between a country's export prices and its import prices, influencing the balance of trade.

Oranges

Citrus fruits with a round shape and a striking orange color, known for being a rich source of vitamin C.