If a Microsoft January 20 Call Option with a Strike

question 104

Multiple Choice

If a Microsoft January 20 call option with a strike price of $20 were about to expire and the market price of the underlying Microsoft stock was $25.62,the price of the call option would have to be __________ to eliminate arbitrage opportunities.

• A)$5.00
• B)$10.00
• C)$15.00
• D)$25.00
• E)none of the above.

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Definitions:

Production Process

The series of steps or actions taken to convert raw materials into finished goods or services.

Units Started

The number of units of product that have entered the production process but may not yet be completed.

Production

The process of creating, manufacturing, or producing goods and services.

Work in Process

Refers to materials and components that have begun their transformation to finished goods but are not yet completed.