The Current Stock Price of Johnson and Johnson Is $64

question 62

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 call option should be worth __________ today.

• A) $0.01
• B) $0.08
• C) $9.26
• D) $9.62

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Definitions:

Consumerism Movement

An organized effort to advocate for the rights and power of consumers in relation to the producers of goods and services.

CSR Dimensions

Various aspects of corporate social responsibility that a company might focus on, such as environmental sustainability, ethical labor practices, philanthropy, and community engagement.

Environmental Marketing

Marketing efforts focused on promoting products or services based on their environmental benefits or sustainability.

Environmental Marketing Strategies

Tactics deployed by companies to promote products or services by highlighting their environmental benefits or sustainability.