Assume That the Stock of Tencheck, Inc

question 67

Multiple Choice

Assume that the stock of Tencheck, Inc., is currently trading for $45 and will either rise to $57 or fall to $19 in one year. The risk-free rate for one year is 9 percent. What is the value of a call option with a strike price of $47? (Do not round intermediate computations. Round final answer to two decimal places.)

• A) $3.40
• B) $6.84
• C) $8.84
• D) $7.25

---

Definitions:

Behavioral Form

An observable expression or manifestation of an individual's behavior, often analyzed in psychological studies.

Rationalization

A defense mechanism whereby individuals justify or explain their behavior or feelings in a seemingly logical or rational way, often to avoid confronting the true motives or emotions underlying their behavior.

Intellectualization

A defense mechanism where a person engages in excessive abstract thinking to avoid dealing with emotional issues.

Subtle Form

An indirect or not immediately obvious manner of manifestation or expression.