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

question 4

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 put option on Taggart stock is closest to:

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

Understand the selection process for new employees.

Learn the essential components of a written notice for employees.

Grasp the different methods of training employees effectively.

Understand the concepts of efficiency and effectiveness in management.

---

Definitions:

Capital Investment

Capital investment refers to funds invested in a business with the expectation of achieving long-term benefits, typically in the form of physical assets like machinery or buildings.

Rate of Return

The profit or deficit achieved from an investment within a certain timeframe, described as a proportion of the investment's initial value.

Net Annual Cash Inflow

The difference between the total cash inflows and outflows of a business over a one-year period.

Internal Rate of Return

A metric used in finance to estimate the profitability of potential investments, calculating the rate of return where the net present value of all cash flows is equal to zero.