Calculate the Price of a Call Option Using the Black

question 11

Multiple Choice

Calculate the price of a call option using the Black Scholes model and the following data.Stock price = $47.30.Exercise price = $50.Time to expiration = 85 days.Risk free rate = 3.0%.Standard deviation = 35%.

• A) $1.11
• B) $2.22
• C) $3.33
• D) $4.44

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Definitions:

Feel Good About Themselves

Experiencing positive self-esteem and satisfaction with one's own abilities, accomplishments, and worth.

Self-Actualized People

Individuals who have achieved their full potential and who embody creativity, independence, spontaneity, and a profound understanding of reality.

Maslow

Psychologist Abraham Maslow, best known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs from the basic to self-fulfillment needs.

Enjoy Time by Themselves

The preference or enjoyment of spending time alone as opposed to being in social settings, often for relaxation or introspection.