The Price of a Stock Is $52

question 19

Multiple Choice

The price of a stock is $52.00.Lacking additional information,what is your forecasted difference between a put option and a call option on this stock? Assume 38 days to expiration and 6.0% interest.

• A) $0.16
• B) $0.32
• C) $0.48
• D) $0.64

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Definitions:

Defense Mechanism

Psychological strategies unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism where unpleasant thoughts, memories, or desires are kept out of conscious awareness.

Oedipus Complex

A psychoanalytic theory introduced by Sigmund Freud, which suggests that a child has unconscious sexual desires for their opposite-sex parent and hostility toward the same-sex parent.

Conscience

An inner feeling or voice viewed as acting as a guide to the rightness or wrongness of one's behavior.