An Investor Has Exchange-Traded Put Options to Sell 100 Shares

question 9

Multiple Choice

An investor has exchange-traded put options to sell 100 shares for $20.There is a $1 cash dividend.Which of the following is then the position of the investor?

• A) The investor has put options to sell 100 shares for $20
• B) The investor has put options to sell 100 shares for $19
• C) The investor has put options to sell 105 shares for $19
• D) The investor has put options to sell 105 shares for $19.05

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Definitions:

Central

Pertaining to the main or most important parts; often used to describe core functions or areas within a system or body.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and breathing.

Involuntary Muscles

Muscles that operate without conscious control, involved in functions such as heartbeat and digestion.

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or the environment.