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:

Semantics

The branch of linguistics concerned with the meaning of words, phrases, and sentences, and how interpretation can vary based on context.

Media Richness

The theory that communication media vary in their ability to convey information accurately and effectively, influenced by immediacy, feedback potential, and personal focus.

Lengel-Daft Contingency Model

A theoretical framework proposing that the effectiveness of communication processes within organizations depends on the complexity and uncertainty of tasks being performed.

Media Selection

The process of choosing the most effective media channels to communicate a message to a target audience.