A Stock Is Currently Selling for $32

question 63

Multiple Choice

A stock is currently selling for $32. The price of a $30 strike call with a 6 month expiration is $3.10. If the interest rate is 3%, what is the price of the put option assuming no dividend is paid?

• A) $0.66
• B) $1.15
• C) $1.36
• D) $1.56
• E) None of the options.

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Definitions:

Office Equipment

Tangible property like desks, computers, and machinery used in an office for operations.

Fair Market Value

The price at which an asset would change hands between a willing buyer and seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell.

Ownership Transfer

The act of transferring the title or rights of property from one party to another.

Journalize

The process of recording financial transactions in a company's accounting records or journals.