A SunSet Co

question 3

Multiple Choice

A SunSet Co.customer would like to obtain a 3-month option to purchase additional units of a product for $77 each.This product currently sells for $76 each.Assume u equals 1.1502 and d = .8694.Approximately what price per unit should SunSet charge for this option if the annual risk-free rate is 2.8 percent?

• A)$4.79
• B)$5.98
• C)$6.17
• D)$6.02
• E)$5.07

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Definitions:

Assisted Suicide

The act of helping another person voluntarily end their own life, often in the context of terminal illness and suffering.

Terminally Ill

A condition in which a disease or illness is deemed incurable and is expected to lead to the death of the patient in the near future.

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A healthcare strategy that entails changing the genetic material in patient cells as a way to manage or prevent illness.

Genetically Altered

An organism or cell with deliberate modifications in its DNA, often to introduce or change specific characteristics.