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

question 27

Multiple Choice

Use the following information to answer the question(s) below.
Consider an American put option on Rearden Metal stock with a strike price of $60 and one year to expiration.Assume that Rearden pays no dividends,its stock is currently trading at $15 per share,and the one-year interest rate is 5%.Also assume that it is optimal to exercise this put option early.
-The price of a one-year American put option on Rearden Metal with a strike price of $70 per share is closest to:

• A)$45.
• B)$50.
• C)$55.
• D)$60.

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Definitions:

Probable Cause

A reasonable basis for believing that a crime may have been committed or that evidence of the crime is present in the place to be searched.

Communication

The exchange of information, thoughts, or messages between people through speaking, writing, or other media.

Psychosocial Needs

Refers to the necessary support for an individual's psychological development and social interactions, emphasizing the importance of mental health and community.

Sending And Receiving

The process involved in the transmission and reception of messages or information between individuals or systems.