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

question 17

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%.
-Assuming the beta on Taggart stock is 0.75,then the beta for a one-year,at-the-money put option on Taggart stock is closest to:

• A)-0.75.
• B)-2.84.
• C)-3.89.
• D)-6.41.

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Definitions:

Psychometric Questionnaire

A measurement tool used in psychology to assess individual's abilities, attitudes, and personality traits through standardized questions.

Personality Traits

Characteristics that form an individual's distinctive character, influencing their behavior and emotional patterns.

Thoughts

The mental processes that include reasoning, perception, judgment, and memory, through which an individual forms ideas, opinions, and attitudes.

Behaviors

The behavior or response of a person or group as a result of outside or inside forces.