If a Microsoft January 20 Put Option with a Strike

question 108

Multiple Choice

If a Microsoft January 20 put option with a strike price of $20 were about to expire and the market price of the underlying Microsoft stock was $15.00, the price of the put option would have to be __________ to eliminate arbitrage opportunities.

• A) $1.00
• B) $2.00
• C) $4.00
• D) $5.00

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Definitions:

High-Elevation Adaptations

The physical or physiological changes that enable organisms to survive and reproduce at high altitudes.

Positive Selection

A process by which beneficial genetic variations that increase fitness are selected for and become more common in a population.

Avian Influenza

A viral infection spread from bird to bird, often highly contagious and potentially deadly, also known as bird flu.

Phylogeny

The evolutionary history and lineage of species or groups of species, depicted as a tree-like diagram showing common ancestry.