Suppose VS's Stock Price Is Currently $20

question 19

Multiple Choice

Suppose VS's stock price is currently $20.In the next six months it will either fall to $10 or rise to $30.What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5 percent per six-month period.

• A)$5
• B)$2.14
• C)$0.86
• D)$7.86

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Definitions:

Neuroglial Cells

Specialized cells in the nervous system that provide support, protection, and nutrition to neurons, playing a crucial role in the maintenance of the neural environment.

Neurons

Cells of the nervous system specialized in conducting electrical impulses, allowing communication between the brain and different parts of the body.

Brain Volume

The total space occupied by brain tissue, often measured in neurological studies as an indicator of brain health and development.

Nerve Impulse

An electrical signal that travels along the nerve fiber, transmitting information between neurons and other cells.