Which One of the Following Situations Will Produce the Highest

question 51

Multiple Choice

Which one of the following situations will produce the highest put price, all else constant? Assume the options are all in the money.

• A)$15 strike price; 45 days to option expiration
• B)$15 strike price; 60 days to option expiration
• C)$20 strike price; 45 days to option expiration
• D)$20 strike price; 60 days to option expiration
• E)Insufficient information is provided to answer this question.

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Definitions:

Disposable Income

This refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

Disposable Income

The total funds available for spending and saving by households after subtracting income taxes.

Savings

Money set aside from personal income for future use, often placed in secure accounts or investments for growth or as a safeguard.

Disposable Income

Funds households are left with for saving or expenditure after income taxes are taken out.