Use the Table for the Questions Below

question 50

Multiple Choice

Use the table for the questions below
Consider the following information on options from the CBOE for Rackspace.
-Assume you want to sell 20 put option contracts with an exercise price closest to being at-the-money and that expires January 2011.The current price that you would receive for such a contract is:

• A)$1750
• B)$2000
• C)$3500
• D)$3900
• E)$4400

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Definitions:

Coercive Power

The power to force someone to do something by threatening, punishing, or using other forms of pressure.

Legitimate Power

The power a person receives as a result of their position in the formal hierarchy of an organization.

Referent Power

A form of influence based on the charisma and interpersonal appeal of the power-holder, rather than on formal positions or commands.

Virtuous Power

Power exercised with moral integrity and for the greater good, often characterized by fairness, justice, and a concern for others' well-being.