What Is the Value of a 6-Month Put with a Strike

question 20

Multiple Choice

What is the value of a 6-month put with a strike price of $27.25 given the Black-Scholes option pricing model and the following information?

• A) $4.71
• B) $4.88
• C) $5.24
• D) $5.64
• E) $6.62

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Definitions:

Input

Information or signals entering a system or process for evaluation, storage, or further processing.

Stirrup

A small, U-shaped bone in the middle ear that plays a critical role in the process of hearing by transmitting sound vibrations to the inner ear.

Oval Window

is a membrane-covered opening at the base of the stapes bone in the middle ear that transfers sound vibrations from the middle ear to the cochlea of the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.