What Is the Total Amount You Will Receive If You $\text { Iexas Instruments (TXN) }$

question 23

Multiple Choice

What is the total amount you will receive if you sell 10 June $27.50 puts on Texas Instruments?
$\text { Iexas Instruments (TXN) }$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {CALL}$ $\quad$ $\quad$ $\quad$$\text {PUT}$
$\begin{array}{llllll}\text { Exp } & \text { Strike } & \text { Bid } & \text { Ask } & \text { Bid } & \text { Ask }\\\text { May } & 25.00 & 6.60 & 6.70 & \text { N/A } & .01 \\\text { Jun } & 25.00 & 6.50 & 6.75 & \text { N/A } & .03 \\\text { Oct } & 25.00 & 6.95 & 7.25 & .39 & .42 \\\text { May } & 27.50 & 4.10 & 4.15 & \text { N/A } & .01\\\text { Jun}&27.50&4.05&4.30&.07&.10\end{array}$

• A)unknown
• B)$70
• C)$100
• D)$4,050
• E)$4,300

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Definitions:

Ledger

A book or collection of financial accounts where transactions are recorded.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the preparation of financial statements in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide companies in preparing financial statements globally.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded only when cash is received or paid, irrespective of when the transactions occurred.