Use the Following Information to Answer the Question(s)below

question 17

Multiple Choice

Use the following information to answer the question(s) below.
(Please use a copy of the Cumulative Probabilities for the standard normal distribution for these problems. )
Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share.Taggart pays no dividends.The risk-free interest rate is 4%.
-Assuming the beta on Taggart stock is 0.75,then the beta for a one-year,at-the-money put option on Taggart stock is closest to:

• A)-0.75.
• B)-2.84.
• C)-3.89.
• D)-6.41.

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Definitions:

Medical Asepsis

Strategies and practices in healthcare designed to reduce the number and transmission of pathogens, including sterilization and use of disinfectants.

Hand Antiseptics

Substances used to eliminate or reduce harmful microorganisms from the hands, enhancing hygiene and preventing disease transmission.

Microorganism

A microscopic living body not perceivable by the naked eye.

Microscopic

Extremely small and detailed, visible only with the aid of a microscope.