If a General Electric January 20 Put Option with a Strike

question 6

Multiple Choice

If a General Electric January 20 put option with a strike price of $50 were about to expire and the market price of the underlying GE stock was $55.00, the price of the put option would have to be __________.

• A) $0.00
• B) $10.00
• C) $15.00
• D) $25.00

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Definitions:

Creditor

An individual or institution that lends money or extends credit to another party, known as the debtor.

Shareholder Rights

The entitlements and protections granted to individuals or entities that own shares in a corporation, including voting on corporate matters.

Subchapter S Corporation

A type of corporation created through an IRS tax election to pass corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a right to a portion of the corporation's profits and assets.