Grocery Express Stock Is Selling for $22 a Share

question 62

Multiple Choice

Grocery Express stock is selling for $22 a share. A three-month, $20 call on this stock is priced at $2.85. Risk-free assets are currently returning .2 percent per month. What is the price of a three-month put on Grocery Express stock with a strike price of $20?

• A) $.37
• B) $.73
• C) $.87
• D) $1.10
• E) $1.18

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Definitions:

Work Balance

The practice of evenly distributing workload among employees or machines to optimize throughput and minimize idle time.

Takt Time

The rate at which a product needs to be completed in order to meet customer demand.

Computerized Diagnostic

Systems or processes that use computer technology to automatically diagnose issues or faults within machinery, electronics, or software.

Operations Times

The total time involved in performing all operational activities, including processing and waiting times, within a production cycle.