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

question 19

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%.
-Which of the following is NOT an input required by the Black-Scholes option pricing model?

• A)The expected volatility of the stock
• B)The expected return on the stock
• C)The risk-free interest rate
• D)The current stock price

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Definitions:

Superior Colliculi

Structures located in the midbrain that are involved in processing visual information and controlling eye movements.

Dura Mater

The tough outermost membrane that surrounds the brain and spinal cord, offering protection.