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

question 28

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%.
-The Black-Scholes value of a one-year European put option on Taggart stock with a strike price of $50 is closest to:

• A)$1.45.
• B)$3.15.
• C)$4.75.
• D)$9.50.

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Definitions:

Middle Element

The element situated in the central position of a linear data structure, such as an array or a list.

Accompanying Figure

A visual representation (such as an image, chart, or diagram) that is provided along with text to illustrate or explain content.

Sequential Search

A search method that checks every element in a list or array one by one until the desired element is found or the list ends.

Key Comparisons

In algorithms or data structures, these are critical operations where values are compared to achieve sorting or to check for duplicates.