USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 118

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A stock currently trades for $130 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk-free rate is 3 three over this time period, and the expected volatility is 0.35.
-Refer to Exhibit 16.3. Calculate the price of the put option.

• A) $1.086
• B) $0.862
• C) $6.234
• D) $0.623
• E) $2.317

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Definitions:

Forebrain

The anterior part of the brain, including the cerebral hemispheres, the thalamus, and the hypothalamus, responsible for complex behaviors and functions.

Hindbrain

The rear portion of the brain that includes the cerebellum, pons, and medulla oblongata, involved in regulating basic life functions.

Brainstem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for regulating basic life functions such as breathing, heartbeat, and blood pressure.

Human Genome Project

A scientific research project aimed at mapping and understanding all the genes of human beings.