Exhibit 22.7 Use the Information Below for the Following Problem(S)

question 54

Multiple Choice

Exhibit 22.7
Use the Information Below for the Following Problem(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 22.7.What would the net value of a protective put position be if the stock price at expiration is $35?

• A) $3.10
• B) $30.15
• C) $32.10
• D) $34.05
• E) $35.00

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Definitions:

Affect Emotion

The experience of feeling or emotion, which can influence perceptions, judgments, and behaviors.

Facial Feedback Hypothesis

The theory that suggests the movement and expressions of our face can influence our emotions.

Common-Sense View

The perspective that intuitions or beliefs held by the majority of people are correct, even without specialized knowledge or scientific evidence.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.