Consider a Stock Priced at $30 with a Standard Deviation

question 42

Multiple Choice

Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options) . Use this information to answer questions 1 through 10.
-Suppose the buyer of the call in problem 1 sold the call two months before expiration when the stock price was $33.How much profit would the buyer make?

• A)$32.89
• B)$30.11
• C)$78.00
• D)$11.00
• E)none of the above

Understand principles of persuasion and attitude change, including the sleeper effect and foot-in-the-door technique.

Grasp the distinction between personal and collective unconscious and the role of stages in psychological development.

Understand the definition and significance of norms within a culture.

Identify the sensitivity required in marketing to adapt to cultural values and avoid taboos.

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Definitions:

Concurrent Jurisdiction

Exists when two or more courts from different systems simultaneously have jurisdiction over a specific case.

Federal Court

A branch of the United States judicial system where federal matters, including civil and criminal cases that involve federal law, are resolved.

Defendant

A person or entity against whom a legal action is brought in a court of law.

State Action

State action refers to activities or measures taken by government bodies or officials that are subject to legal review or may impact citizens' rights.