If a Microsoft January 20 Put Option with a Strike

question 43

Multiple Choice

If a Microsoft January 20 put option with a strike price of $20 were about to expire and the market price of the underlying Microsoft stock was $15.00, the price of the put 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.