Use the Information for the Question(s)below

question 31

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 the binomial pricing model,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)$1.45.
• C)$2.40.
• D)$2.15.

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Entire Product

The complete offering that includes the core product along with any additional services, features, or benefits that enhance its value.

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Similar Course

Educational programs or classes that cover comparable topics, themes, or subject matter, often within the same field of study.

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The phase in team development where group members efficiently work together and achieve their goals with high levels of autonomy and competence.