The Following Prices Are Available for Call and Put Options

question 36

Short Answer

The following prices are available for call and put options on a stock priced at $50.The risk-free rate is 6 percent and the volatility is 0.35.The March options have 90 days remaining and the June options have 180 days remaining.The Black-Scholes model was used to obtain the prices.
Use this information to answer questions 1 through 20.Assume that each transaction consists of one contract (for 100 shares)unless otherwise indicated.
For questions 1 through 6,consider a bull money spread using the March 45/50 calls.
-What is the breakeven point?
A)$48.02
A)none of the above
B)$41.98
C)$55.66
D)$50.00

• A)$48.02
• A)none of the above
• B)$41.98
• C)$55.66
• D)$50.00

---

Definitions:

Ethical Action

Actions conducted with consideration for what is morally right and good, often guided by ethical principles in personal, professional, or social contexts.

Situations

Refers to set of conditions or circumstances pertinent to a specific context or environment.

Machine Learning

A subset of artificial intelligence that involves the use of algorithms and statistical models to enable computers to perform tasks without explicit instructions, by relying on patterns and inference.

Artificial Intelligence

The simulation of human intelligence processes by machines, especially computer systems, including the ability to learn, reason, and adapt to new situations.