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:

Porosity

The measure of empty spaces in a material, allowing it to hold water or air, critical in evaluating soil health, water filtration, and material properties.

Pore Space

The voids or gaps between soil particles, which can hold air or water, essential for plant growth and the movement of groundwater.

Biogeochemical Cycles

The natural processes that recycle nutrients and elements among the biosphere, atmosphere, lithosphere, and hydrosphere.

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, precipitation, and infiltration.