Use These Option Quotes to Answer This Question:
ZZ Industries

question 43

Multiple Choice

Use these option quotes to answer this question:
ZZ Industries: Price 34.36
Calls:
$\begin{array}{ccccccc}\text { Strike }&\text { Symbol}&\text { Last}&\text { Chg }&\text { Bid }&\text { Ask }&\text { Vol }&\text { open Int }\\30.00 & \text { ZZBF } & 4.30 & \downarrow .07 & 4.30 & 4.40 & 62 & 3,429 \\32.50 & \text { ZZBZ } & 1.87 & \downarrow .07 & 1.82 & 1.87 & 236 & 8,168 \\35.00 & \text { ZZBG } & .01 & \downarrow .05 & .00 & .01 & 3119 & 38,017\end{array}$



Puts:
$\begin{array}{lcccccrr}\text { Strike } & \text { Symbol } & \text { Last } & \text { Chg } & \text { Bid } & \text { Ask } & \text { Vol } & \text { Open Int } \\30.00 & \text { ZZNF } & .01 & .00 & .00 & .01 & 0 & 7,258 \\32.50 & \text { ZZNZ } & .01 & \downarrow .02 & .00 & .01 & 562 & 34,972 \\35.00 & \text { ZZNG } & .60 & \downarrow.14 & .63 & .68 & 2637 & 19,686\end{array}$


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You want the right, but not the obligation, to sell 300 shares of ZZ Industries stock at a price of $32.50 a share. How much will it cost you to establish this option position?

• A)$3.00
• B)$4.00
• C)$3.60
• D)$3.78
• E)$3.82

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Definitions:

Capital Expenditures Budget

A budget detailing the planned investments in fixed assets, such as machinery, equipment, or buildings, intended to benefit the company over a long period.

Master Budget

A comprehensive financial plan made up of several smaller, specific budgets that detail a company's projections for future periods.

Long-Term Financial Plans

Strategies and financial goals set by a business or individual for a period extending beyond one year.

Budgets

Financial plans that outline expected revenues and expenditures for a specific period of time.