What Is the Value of D2 That Should Be Used

question 8

Multiple Choice

What is the value of d2 that should be used when calculating the value of a call option on this stock with the Black- Scholes option pricing model?

• A) .33464
• B) .07483
• C) .40822
• D) .01842

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Definitions:

Liquidity Ratio

Financial metrics used to determine a company’s ability to pay off its short-term debts obligations with its liquid assets.

Generate Cash

The processes and strategies employed by businesses to increase liquidity and ensure sufficient funds are available for operational needs and investments.

Bill Payments

The process of settling financial obligations for services rendered or goods provided.

Just-In-Time Scheduling

A method of minimizing inventory by sending out materials to workstations “just in time” to be used.