A Stock Is Currently Trading At $S _ { 0 } = 21.30$

question 2

Multiple Choice

A stock is currently trading at $S _ { 0 } = 21.30$ . It is not expected to pay dividends over the next year. You price a one-month put option on the stock with a strike of $K = 22.50$ using the Black-Scholes model and find the following numbers: $$\begin{array} { r l r l } d _ { 1 } & = - 0.666 & d _ { 2 } & = - 0.738 \\N \left( d _ { 1 } \right) & = 0.253 & N \left( d _ { 2 } \right) & = 0.230\end{array}$$ Given this information, the delta of the put is

• A) \(- 0.770\) .
• B) \(- 0.334\) .
• C) \(- 0.262\) .
• D) \(- 0.747\) .

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Definitions:

Manufacturing Operations

Processes and activities involved in converting raw materials into finished products, including production planning, assembly, and quality control.

Production Activity

Activities involved in the creation of goods or services, including material selection, manufacturing, and quality control.

Work in Process Inventory

Inventory that includes goods that are in the production process but are not yet completed.

Finished Goods Available

The total quantity of manufactured products that are completed and ready for sale to customers at the end of an accounting period.