) Given the Hypothetical Data in Exhibit 20­1

question 11

Multiple Choice

) Given the hypothetical data in Exhibit 20­1, what is the balance on currentaccount?

• A)­$1,500
• B)­$2,000
• C)­$2,400
• D)­$2,420
• E)­$2,500

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Definitions:

At-The-Money Puts

Put options whose strike price is approximately equal to the current price of the underlying asset.

Out-Of-The-Money Puts

Options contracts where the strike price is higher than the market price of the underlying asset.

Maximum Loss

The greatest potential loss one could incur in an investment or trading position.

2-For-1 Split

A stock split where for each share owned, a shareholder receives an additional share, effectively doubling the number of shares.