A Stock Is Selling for $41

question 6

Multiple Choice

A stock is selling for $41.60.The strike price on a call,maturing in 6 months,is $45.The possible stock prices at the end of 6 months are $35.00 and $49.00.Interest rates are 5.0%.Given an under-priced option,what are the short sale proceeds in an arbitrage strategy?

• A) $6.36
• B) $8.22
• C) $10.43
• D) $11.89

---

Definitions:

Essential Vitamins

Nutrients that the body cannot synthesize in sufficient quantities and must be obtained from the diet to maintain health.

Track Moving Objects

The ability to monitor and follow the position and trajectory of objects in motion, commonly used in surveillance, video games, and robotics.

Bright Lights

High-intensity illumination, which can be natural or artificial, and is often used to enhance visibility in a given area or setting.

Response

Response refers to a reaction or reply to a specific stimulus or situation.