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

question 27

Multiple Choice

Use the following information to answer the question(s) below.
Consider an American put option on Rearden Metal stock with a strike price of $60 and one year to expiration.Assume that Rearden pays no dividends,its stock is currently trading at $15 per share,and the one-year interest rate is 5%.Also assume that it is optimal to exercise this put option early.
-The price of a one-year American put option on Rearden Metal with a strike price of $70 per share is closest to:

• A)$45.
• B)$50.
• C)$55.
• D)$60.

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Definitions:

Undesirable Behavior

Actions or conduct deemed unacceptable or inappropriate by societal or individual standards.

Desirable Response

An ideal or targeted reaction or behavior that therapy aims to elicit from a client in specific situations.

Stimulus Control

A behavioral intervention technique involving the alteration of environmental factors to modify a specific behavior by manipulating the cues that trigger it.

Antecedent Cues

Environmental or psychological triggers that precede and potentially influence an individual's behavior or emotional state.