The Current Price of a Stock Is $100

question 1

Multiple Choice

The current price of a stock is $100. What is the Black-Scholes model price of a six-month put option at strike $98, given an interest rate of 2% and a dividend rate of 1%? The volatility is 45%.

• A) $11.02
• B) $11.22
• C) $11.68
• D) $11.73

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Definitions:

Gestalt Psychology

A psychological approach that emphasizes that the whole of anything is greater than its parts, focusing on patterns and objects as perceived in the human mind.

Structuralism

An approach in psychology that analyzes mental and cultural phenomena in terms of their smallest components and the relations between them.

Inner Experience

The personal, subjective component of what individuals perceive, feel, and think, often considered introspective and self-reflective in nature.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.