The Following Quotes Were Observed for Options on a Given

question 23

Multiple Choice

The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.

The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December) and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated.
-What is the time value of the November 115 put?

• A)1.75
• B)2.80
• C)1.10
• D)0.00
• E)none of the above

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Definitions:

Passing

The ability of a person to be regarded as a member of an identity group or category different from their own, especially in contexts of gender, race, social class, etc.

Stigma

Personal characteristics that others view as insurmountable handicaps preventing competent or morally trustworthy behavior.

Mascots

Characters, often anthropomorphic, used to represent a team, brand, or organization, typically for marketing or spirit reasons.

Consequences

Results or effects that stem from specific actions or conditions, potentially leading to positive or negative outcomes.