Find the Value of a European Put Option on Futures

question 10

Multiple Choice

Find the value of a European put option on futures if the futures price is 72,the exercise price is 70,the continuously compounded risk-free rate is 8.5 percent,the volatility is 0.38 and the time to expiration is three months.

• A)6.30
• B)12.90
• C)4.34
• D)2.00
• E)none of the above

Recognize the relationship between capitalism, overpopulation, and urbanization challenges.

Identify the impact of urbanization in semi-industrialized compared to rich countries.

Comprehend sex ratio dynamics and factors affecting it.

Grasp the concept of cities as vehicles for capital accumulation post-World War II.

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Definitions:

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response, and are elicited by specific stimuli or situations.

Serial Position Effect

A cognitive bias where individuals tend to remember the first and last items in a series better than those in the middle.

Recall

The process of retrieving information from memory without the aid of explicit cues.

Priming

A psychological effect in which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.