A 1-Month $15 Call Option on BRU Stock Is Priced

question 64

Multiple Choice

A 1-month $15 call option on BRU stock is priced at $1.45 while the 1-month $20 put option is priced at $3.45.Which one of these is the best estimate of the current price of one share of BRU stock?

• A)$14.50
• B)$16.50
• C)$15.00
• D)$16.00
• E)$15.50

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Definitions:

Speed Increasing

The process of accelerating or increasing the rate of motion or activity.

Transmission Tailshaft

The rear section of a vehicle's transmission, connecting to the driveshaft, that transfers power from the transmission to the wheels.

Mating Gear

Refers to a gear that engages with another gear to transmit force and motion in mechanical systems.

Climbing

A gear problem caused by excessive wear in intermeshing gears or bearings. Climbing occurs when intermeshing gears move apart sufficiently for one gear to climb over the apex of its mate.