Suppose That Nielson Motors Stock Is Trading for $50 Per

question 23

Multiple Choice

Suppose that Nielson Motors stock is trading for $50 per share and that Nielson pays no dividends.What is the minimum possible price for an American put option on Nielson Motors with a strike price of $70?

• A)$0
• B)$20
• C)$50
• D)infinite

---

Definitions:

Government Officials

Individuals who hold positions of authority in government institutions and are responsible for making and enforcing rules and laws.

Pork Barrel

Government spending for localized projects secured primarily to bring money to a representative's district, often criticized as wasteful and politically motivated.

Government Loan Subsidies

Financial support from the government that reduces the cost of borrowing for certain individuals, businesses, or sectors.

Special-Interest Effects

The impact of policies or actions that benefit a small group at the expense of the general public, often due to lobbying or political influence.