Recently You Bought a Call and a Put Option on a Stock

question 102

Multiple Choice

Recently you bought a call and a put option on a stock with a common exercise price of $75.The call premium was $5 and the put premium was $3.You will make money from this position if the stock price is:

• A)Greater than $75, but less than $78
• B)Greater than $75, but less than $80
• C)Greater than $72, but less than $75
• D)Less than $67, or greater than $83

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Definitions:

Hair Cells

Sensory cells located in the inner ear, responsible for converting sound vibrations into electrical signals that can be interpreted by the brain.

Vestibular System

The sensory system that contributes to balance and spatial orientation for the purpose of coordinating movement with balance.

Action Potentials

Electrical impulses that are part of the process that cells use to communicate with each other, crucial for the functioning of nerves and muscles.

Unilateral Damage

Harm or injury to one side of the body or brain, affecting one half of the body or one of a pair of bodily organs.