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You Own 200 Shares of Stock Which You Would Like

question 32

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You own 200 shares of stock which you would like to have the right to sell at $40 a share. The 40 call option is quoted at $.35 bid, $.40 ask. The 40 put is quoted at $.50 bid, $.55 ask. How much will it cost you to obtain the right to sell all your shares at $40 a share?

Recognize examples of discrete and continuous random variables in practical contexts.
Understand the mathematical relationships and operations involving expected values and variances.
Identify and apply the conditions required for the distribution of discrete random variables.
Interpret the mean and its implications in real-world contexts for various distributions.

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