Assume That N(d1) =

question 34

Multiple Choice

Assume that N(d1) = .63105 and N(d2) = .50735. Compute the value of the call option using the Black -Scholes option pricing model.

• A) $23.99
• B) $7.56
• C) $7.20
• D) $2.00

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Definitions:

Personal Experience

refers to events or encounters an individual personally goes through, shaping their perception and understanding of the world.

Primacy Effect

The Primacy Effect is a cognitive bias that results in a person recalling information presented at the beginning of a list better than information in the middle or end.

Phi Phenomenon

An optical illusion of perceiving a series of still images, when viewed in rapid succession, as continuous motion.

Halo Effect

The tendency to form an overall positive impression of a person based on one positive characteristic.