You Own Both a May 20 Call and a May

question 45

Multiple Choice

You own both a May 20 call and a May 20 put. If the call finishes in the money, then the put will:

• A) Also finish in the money.
• B) Finish at the money.
• C) Finish out of the money.
• D) Either finish at the money or in the money.
• E) Either finish at the money or out of the money.

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Definitions:

Production Techniques

Methods and processes used in the creation of goods and services, influenced by technology, labor skills, and resource availability.

Labor and Capital

The primary factors of production where labor refers to human effort and capital represents buildings, machinery, and equipment.

Fundamental Questions

The basic economic questions that every society must answer, which include what to produce, how to produce, and for whom to produce.

Prices Charged

The amount of money demanded by a business in exchange for its goods or services.