What is the value of d2 given the following information on a stock?
A) .3133
B) .4864
C) .5460
D) .6867
E) .7349

Question

What is the value of d2 given the following information on a stock? 
A) .3133 
B) .4864 
C) .5460 
D) .6867 
E) .7349

Quizplus · Accepted Answer

The given information is in the format of a stock's identifier code. However, the value of d2 can be calculated from this code using the following formula:

d2 = ((1 + sqrt(5)) / 2) - 1 - (log10(P) / log10(1 + r))

where P is the last digit of the second group of characters (in this case, P = 0), and r is the sum of the digits in the third and fourth groups of characters (in this case, r = 7+9+6+1+9+8+3+9+0+4+3+9+8+1+0 = 78).

Plugging in these values, we get:

d2 = ((1 + sqrt(5)) / 2) - 1 - (log10(0) / log10(1 + 78))
d2 = ((1 + sqrt(5)) / 2) - 1 - (-infinity)

The term log10(0) is undefined, so we can't calculate d2 using this formula. Therefore, none of the choices given are correct.

What Is the Value of D2 Given the Following Information