Find the Input D₁ of the Black-Scholes Price of a Six-Month

question 13

Multiple Choice

Find the input d₁ of the Black-Scholes price of a six-month call option written on €100,000 with a strike price of $1.00 = €1.00.The current exchange rate is $1.25 = €1.00; The U.S.risk-free rate is 5% over the period and the euro-zone risk-free rate is 4%.The volatility of the underlying asset is 10.7 percent.

• A)d₁ = 0.103915
• B)d₁ = 2.9871
• C)d₁ = 0.0283
• D)none of the options

Understand the concept of resonance structures and how they contribute to the stability of molecules.

Comprehend the relationship between molecular structure and bonding, including single, double, and triple bonds.

Recognize molecules that do not adhere to the octet rule and explain the exceptions.

Determine the correct molecular shape using the valence shell electron pair repulsion (VSEPR) theory.

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