Q 11

Use the following information to answer the question(s)below. (Please use a copy of the Cumulative Probabilities for the standard normal distribution for these problems.) Taggart Transcontinental's stock has a volatility of 25% and a current stock price of $40 per share. Taggart pays no dividends. The risk-free interest rate is 4%. -The Black-Scholes value of a one-year, at-the-money put option on Taggart stock is closest to: A)$1.45 B)$3.15 C)$4.75 D)$9.50

Multiple Choice