Calculate the Price of a European Call Option Using the Black

question 19

Multiple Choice

Calculate the price of a European call option using the Black Scholes model and the following data.Stock price = $56.80.Exercise price = $55.Time to expiration = 15 days.Risk free rate = 2.5%.Standard deviation = 22%.Dividend yield = 8%.

• A) $1.49
• B) $1.79
• C) $2.04
• D) $2.19

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Definitions:

Interrupts Frequently

The act of regularly breaking the continuity of speech or a process before it is finished.

Fosters Dependency

Encouraging a reliance or strong need for support, assistance, or control by another individual or group, potentially hindering independence.

Superiority Position

A stance or situation in which an individual or group considers themselves better or more important than others, often leading to social hierarchies.

Creative Thinking

A thought process involving innovation, uniqueness, and the ability to generate new ideas or solutions.