Use the Table for the Questions Below

question 84

Multiple Choice

Use the table for the questions below
Consider the following information on options from the CBOE for Rackspace.
-Assume you want to buy 10 put option contracts with an exercise price closest to being at-the-money and that expires January 2011.The current price that you would have to pay for such a contract is:

• A)$1750
• B)$2000
• C)$1950
• D)$2200
• E)$2550

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Definitions:

TSX

Toronto Stock Exchange, the largest stock exchange in Canada, where stocks, bonds, and other securities are bought and sold.

Incentive Schemes

Programs designed to motivate and compensate employees, often tied to performance criteria to enhance productivity and achieve corporate goals.

Ethical Behaviour

Conduct that is in accordance with accepted principles of right or wrong governing the conduct of a profession or individual.

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Individuals who expose information or activity within a private, public, or government organization that is deemed illegal, unethical, or not correct.