You Purchased a Share of Stock for $30

question 30

Multiple Choice

You purchased a share of stock for $30.One year later you received $1.50 as a dividend and sold the share for $32.25.What was your holding-period return?

• A)12.5%
• B)12.0%
• C)13.6%
• D)11.8%
• E)none of the above

---

Definitions:

Boundary Values

Specific points which are used in software testing to check the behavior of a program at the start or end of a range of acceptable inputs.

Black-Scholes

A mathematical model used to price European options and derivatives by estimating the variation over time of financial instruments.

Standard Deviation

The positive square root of the variance.

Option Theta

A measure of the rate of decline in the value of an option due to the passage of time.