Consider a Stock That Is Trading at $50 $- 0.40$ the Stock Volatility Is 20%, the Risk-Free Rate Is

question 2

Multiple Choice

Consider a stock that is trading at $50. A six-month at-the-money put option on the stock has a price of 2.21 and a delta of $- 0.40$ . The stock volatility is 20%, the risk-free rate is 4%, and the beta of the stock is 1.1. What is the beta of the put?

• A) \(- 0.44\)
• B) \(- 1.1\)
• C) \(+ 1.1\)
• D) \(- 9.95\)

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Definitions:

Gantt Chart

A visual project management tool that illustrates a project schedule, showing the start and finish dates of different tasks.

Flow Charts

Diagrams used to represent a process or workflow, showing sequential steps or decisions.

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Decisions that require a clear, binary choice between two options, often characterized by simplicity and decisiveness.

Project Management

Project Management is the practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at a specified time.