Tru-U Is Selling for €36 a Share

question 43

Multiple Choice

Tru-U is selling for €36 a share.A 3-month call on Tru-U with a strike price of €40 is priced at €1. Risk-free assets are currently returning 0.25% per month.What is the price of a 3-month put on Tru-
U with a strike price of €40?

• A)€2.98
• B)€3.00
• C)€4.03
• D)€4.70
• E)€4.90

---

Definitions:

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral part of the mind that internalizes societal rules and standards.

Dominant Part

The component within a system or relationship that holds primary influence or control over the others.

Sexual Instinct

Sexual Instinct is the innate or biological drive related to sexual activity and reproduction.

Fixated

Refers to an obsessive interest or focus on a specific subject or idea.