USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 45

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.1. How much must an investor pay for one call option contract?

• A) $680
• B) $815
• C) $625
• D) $590
• E) $340

---

Definitions:

Area Under the Curve

A measure used in various statistical analyses to quantitatively summarize the shape of a curve, often related to the performance of a model or the distribution of data.

Standard Normal Random Variable

A random variable that has a mean of zero and a standard deviation of one, following a normal distribution.

Continuous Random Variable

A continuous random variable is a variable that can take an infinite number of values within a given range where each value is measurable.

Continuum

A continuous sequence or range of values where there is no clear division between one state and the next.