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The Current Stock Price of Johnson and Johnson Is $64

question 58

Multiple Choice

The current stock price of Johnson and Johnson is $64 and the stock does not pay dividends. The instantaneous risk free rate of return is 5%. The instantaneous standard deviation of J&J's stock is 20%. You wish to purchase a call option on this stock with an exercise price of $55 and an expiration date 73 days from now.
-Using the Black-Scholes OPM,the put option should be worth __________ today.


Definitions:

Phonemic

Pertains to phonemes, which are the smallest units of sound in a language that distinguish one word from another.

Structural

Relates to the physical or organizational shape, composition, or arrangement of something.

Episodic

Pertaining to events or incidents that occur in separate, distinct episodes, often relating to memory in psychology.

Phonemically

Pertaining to phonemes, which are the smallest units of sound in a language that distinguish one word from another.

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