You Own 200 Shares of Stock Which You Would Like

question 32

Multiple Choice

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?

• A)$70
• B)$80
• C)$100
• D)$110
• E)$130

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Definitions:

Old Northwest

A historical term for the territorial region of the United States northwest of the Ohio River, encompassing states like Ohio, Indiana, Illinois, Michigan, Wisconsin, and parts of Minnesota.

Mississippi River

One of the largest river systems in North America, flowing southwards for over 2,300 miles from its source in Minnesota to the Gulf of Mexico, serving as a vital waterway for transportation, commerce, and ecology.

Treaty

A formal and legally binding agreement between two or more sovereign states or international organizations.

War of 1812

The War of 1812 was a conflict fought between the United States and Britain over issues including trade restrictions and the impressment of American sailors, culminating in no significant territorial changes.