What Is the Value of a Call Given the Black-Scholes

question 28

Multiple Choice

What is the value of a call given the Black-Scholes model and the following information? Stock price = $44,Exercise price = $40,Time to expiration = .75,Risk-free rate = 4.5%,Standard deviation = 25%,N(d₁) = .759395,and N(d₂) = .687172.

• A)$2.03
• B)$4.86
• C)$6.84
• D)$8.81
• E)$9.27

Know the significance of disclosure documents in franchising and the legal requirement to provide comprehensive information to potential franchisees.

Grasp the concept of franchise earnings claims and the necessary basis for such claims.

Identify the procedures for transferring business ownership in a sole proprietorship.

Recognize the tax implications for sole proprietors and how a sole proprietorship is affected upon the owner's death.

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