When the Time Period Is in Days, Such as 56

question 86

Multiple Choice

$\begin{array}{llcc} \text { Stock price } &\$57 \\ \text { Strike price} &\$60\\ \text { Time to maturity } &56 \text {days}\\ \text { Standard deviation } &79\%\\ \text { Risk-free rate } &5.1\%\\\end{array}$


When the time period is in days, such as 56 days, the input for the time period is " = 56/365"
-What is the price of the put option?

• A) $8.50
• B) $5.94
• C) $6.43
• D) $6.22
• E) $5.97

Explain the role of price elasticity in decision-making processes.

Understand the concept of price discrimination and its acceptability under specific conditions.

Identify the steps involved in setting prices within a competitive environment.

Recognize the effects of international pricing strategies and the influence of import/export taxes.