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:

Fluid Pressure

The pressure exerted by a fluid at any given point within the fluid, dependent on the depth and density of the fluid.

Eyeball

The organ of vision in the human body, spherical in shape, which captures light and processes it into signals sent to the brain.

Glaucoma

A group of eye conditions that can cause blindness by damaging the optic nerve, usually due to high pressure in the eye.

Liver Cirrhosis

A late stage of scarring (fibrosis) of the liver caused by many forms of liver diseases and conditions, such as hepatitis and chronic alcoholism.