An Investor Has Exchange-Traded Put Options to Sell 100 Shares

question 14

Multiple Choice

An investor has exchange-traded put options to sell 100 shares for $20.There is a 2 for 1 stock split.Which of the following is the position of the investor after the stock split?

• A) Put options to sell 100 shares for $20
• B) Put options to sell 100 shares for $10
• C) Put options to sell 200 shares for $10
• D) Put options to sell 200 shares for $20

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Definitions:

CPM/PERT Analysis

Project management tools that help in planning, scheduling, and controlling complex projects, standing for Critical Path Method and Program Evaluation and Review Technique, respectively.

Activities-On-Nodes

A project management technique that represents tasks or activities as nodes in a network diagram, with edges indicating dependencies.

Financial Control

The management of a company's finances, ensuring that its resources are used efficiently and effectively.

Liquidity

The measure of how quickly and easily an asset can be converted into cash without significantly affecting its value.