Non-Dividend Paying Stock XYZ Is Trading at $20

question 2

Multiple Choice

Non-dividend paying stock XYZ is trading at $20. The risk free rate is 2%. The minimum price of a four-month American put option at strike $22 is

• A) $0
• B) $1.27
• C) $1.89
• D) $2.00

---

Definitions:

Preoperational Thought

A stage in Piaget's theory of cognitive development, where children from about 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Critical Period

A critical period is a specific time during an organism's life span when it is particularly receptive to certain stimuli or experiences, which can have a profound and lasting impact on development.

Social Skills

Abilities that facilitate interaction and communication with others.

Early Maturation

The process of reaching physical and sexual development sooner than what is considered typical for a particular age group.