A Stock Is Currently Selling for $51

question 25

Multiple Choice

A stock is currently selling for $51.00. What is the minimum amount for which a put option on the stock with a strike price of $50.00 should sell?

• A)$50.00
• B)$1.00
• C)-$1.00
• D)$0

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Definitions:

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investments are considered investing activities.

Non-current Assets

Non-current assets are long-term resources owned by a company, expected to provide economic benefits beyond one year, such as property, plant, and equipment (PP&E), and intangible assets.

Direct Method

A cash flow statement presentation that lists major categories of gross cash receipts and payments.

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material, labor, and overhead costs, directly affecting gross profit.