Martin Owns 15,000 Shares of Stock That He Wants to Sell

question 3

Multiple Choice

Martin owns 15,000 shares of stock that he wants to sell sometime within the next three months. Shares of this stock are currently selling for $43.24. The stock has been increasing in price but Martin is concerned the price might start to fall. He is not yet willing to sell his shares just in case the price rises some more. To guarantee that he can receive at least $42.50 a share when he does sell, Martin could purchase _____ with a strike price of $42.50.

• A) 1,500 warrants
• B) 150 calls
• C) 15,000 puts
• D) 1,500 puts
• E) 150 puts

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Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Alfred Adler

An Austrian psychologist and founder of Adlerian psychology, emphasizing the importance of feelings of inferiority and social interest.

Person-centered

An approach to therapy and care that emphasizes the importance of considering the individual's personal feelings, thoughts, and experiences.

Subjective Point of View

An individual’s personal perspective, influenced by their feelings, beliefs, and experiences, rather than objective facts.