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

question 22

Multiple Choice

Use the following information to answer the question(s) below.
(Please use a copy of the Cumulative Probabilities for the standard normal distribution for these problems. )
Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share.Taggart pays no dividends.The risk-free interest rate is 4%.
-The Black-Scholes value of a one-year,at-the-money call option on Taggart stock is closest to:

• A)$1.45.
• B)$3.15.
• C)$4.75.
• D)$9.50.

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Definitions:

Prokaryotic Cell

A simple, unicellular organism without a nucleus or other membrane-bound organelles, such as bacteria.

Bacterium

Single-celled prokaryotic organisms that are members of the domain Bacteria. Lack a nucleus and membrane-bound organelles.

Cell Theory

A fundamental scientific theory that postulates that all living organisms are composed of cells, that the cell is the basic unit of life, and that all cells come from pre-existing cells.

Protein Synthesis

The biological process by which cells generate new proteins, involving transcription of DNA to mRNA and translation of mRNA to a specific amino acid sequence.