Texa Inc Is Trading at $23 Per Share and Has Options

question 62

Multiple Choice

Texa Inc. is trading at $23 per share and has options available with a $30 strike price. Which of the following options will have the highest premium?

• A) A call option on Texa with a 1-month expiration
• B) A put option on Texa with a 1-month expiration
• C) A call option on Texa with a 3-month expiration
• D) A put option on Texa with a 3-month expiration

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Definitions:

Secondary Consumer

An animal that eats herbivores (primary consumers).

Primary Consumer

Herbivores that feed on primary producers (plants and algae), playing a pivotal role in the transfer of energy through the food chain.

Bird

A warm-blooded vertebrate characterized by feathers, beaks, and typically the ability to fly.

Primary Producer

Organisms, typically plants and algae, that produce organic compounds from carbon dioxide through photosynthesis, serving as a food source for other organisms in the ecosystem.