Use the Information for the Question(s)below

question 31

Multiple Choice

Use the information for the question(s) below.
The current price of KD Industries stock is $20.In the next year the stock price will either go up by 20% or go down by 20%.KD pays no dividends.The one-year risk-free rate is 5% and will remain constant.
-Using the binomial pricing model,the calculated price of a one-year put option on KD stock with a strike price of $20 is closest to:

• A)$2.00.
• B)$1.45.
• C)$2.40.
• D)$2.15.

Identify the difference between an offer to form a contract and other pre-contractual statements.

Recognize the elements necessary for an effective offer.

Distinguish between offers and invitations to negotiate or bid.

Understand the conditions under which an offer can be revoked or rejected.

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Definitions:

Social Unrest

A condition of dissatisfaction and discord within a community or society, often leading to protests, demonstrations, or conflicts.

Relatively Deprived

A perception or feeling of disadvantage when comparing oneself to others in similar situations or to societal standards, leading to dissatisfaction and potential social unrest.

Relative Deprivation

A feeling of dissatisfaction or injustice experienced by people who believe they have less than they deserve, often in comparison to others.

Race Riots

Violent conflicts that arise from tensions or confrontations between racial groups within a community or society.