You Notice That the Price of a One-Year Call Option,with

question 68

Multiple Choice

You notice that the price of a one-year call option,with a $40 strike price,is $5.The current price of the underlying stock is also $40.What should the price of a one-year put option be with a strike price of $40? Assume that the interest rate on a one-year risk free bond is 10%.

• A) $5
• B) $0
• C) $1.36
• D) $8.63

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Definitions:

Intersexed

Pertaining to individuals born with physical sex characteristics that do not fit typical binary notions of male or female bodies.

Great Spirit

A concept in some indigenous beliefs of North America, referring to an all-encompassing, powerful, spiritual force or supreme being.

Mother Earth

A common personification of nature that focuses on the life-giving and nurturing aspects of nature by embodying it in the form of the mother.

Intersexed

An umbrella term for individuals whose anatomy or genes differ from typical definitions of male or female at birth.