Recently You Bought a Call and a Put Option on a Stock

question 41

Multiple Choice

Recently you bought a call and a put option on a stock with a common exercise price of $75.The call premium was $5 and the put premium was $3.You will make money from this position if the stock price is:

• A)greater than $75, but less than $78.
• B)greater than $75, but less than $80.
• C)greater than $72, but less than $75.
• D)less than $67, or greater than $83.

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Definitions:

Aggressive Behavior

Behavior aimed at causing harm or pain to another being, motivated by hostility, anger, or a desire to dominate.

Inhibition

Refers to the psychological process through which certain behaviors or responses are suppressed.

Respondent Behavior

A behavioral process (also known as the conditioned response) that occurs in reaction to a specific stimulus without conscious intention.

Physiological Processes

The natural biological activities and functions occurring within the body's systems and organs.