A Put Option with 60 Days to Maturity,exercise Price of $12.00,and

question 36

Multiple Choice

A put option with 60 days to maturity,exercise price of $12.00,and the risk-free rate is 7% p.a.If a call option is trading at $2.24 and a put option with $0.06,what is the share price that will result in put-call parity holding?

• A) \( \$ 10 \)
• B) \( \$ 12 \)
• C) \( \$ 14 \)
• D) \( \$ 16 \)

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Spontaneous Recovery

A phenomenon in learning where a previously extinguished response reemerges after a period without exposure to the conditioned stimulus.

Bandura's Study

Refers to research conducted by psychologist Albert Bandura, especially known for his work on social learning theory and the concept of self-efficacy.

Aggression

Behavior intended to harm or intimidate others, manifesting physically or verbally.