Use the Information for the Question(s)below

question 38

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 risk-neutral probabilities,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)$2.15.
• C)$1.45.
• D)$2.40.

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Definitions:

Variety of Food

Refers to the diversity in dietary options available for consumption, encompassing different food types, flavors, and nutritional values.

Bilateral Animals

Organisms with a body plan that is symmetrically divided along a vertical plane, creating mirrored halves on either side.

Common Ancestor

An ancestor that two or more descendants have in common, where it is the most recent individual from which all organisms in a group directly descend.

Hox Genes

A group of related genes that control the body plan of an embryo along the head-tail axis.