KD Industries Stock Is Currently Trading at $32 Per Share

question 30

Multiple Choice

KD Industries stock is currently trading at $32 per share.Consider a put option on KD stock with a strike price of $30.The maximum value of this put option is:

• A)$0.
• B)$32.
• C)$30.
• D)$2.

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Definitions:

Face Validity

Refers to the extent to which a test appears to measure what it is intended to measure, based purely on its surface characteristics.

Mean Score

The average value obtained by dividing the sum of all values in a set by the number of values in that set; used as a measure of central tendency in statistics.

Standard Deviation

A statistical measure of the dispersion or variability within a set of numerical data, indicating how much individual data points differ from the mean.

Mode

The most frequent score.