Question: An analyst is interested in using the Black-Scholes model to value put options on the stock of Marble LTD. The analyst has accumulated the following

An analyst is interested in using the Black-Scholes model to value put options on the stock of Marble LTD. The analyst has accumulated the following information:

The price of the stock is $28.

The strike price is $22.

The option matures in 3 months.

The standard deviation of the stocks returns is 0.45.

The risk-free rate is 3%.

Using the Black-Scholes model, what is the value of the put option?

(

A - Cannot determine since the option is out of the money. B - $1.29 C - $2.29 D - $0.01 E - $0.38

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