Which One of the Following Is Correct for the Owner

question 69

Multiple Choice

Which one of the following is correct for the owner of a September put, valued at $20, on CBA Corp. with a strike price of $80? CBA currently trades at $67.

• A) The option will continue to gain value until its September expiration.
• B) The owner profits $13 per share by exercising now.
• C) Further decreases in the CBA stock price will be translated directly into additional option value.
• D)$20 is the maximum value for this option.

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Definitions:

Contraceptive

Any method or device used to prevent pregnancy, ranging from hormonal pills and implants to barrier methods like condoms.

Anorexia Nervosa

A serious mental health disorder characterized by an intense fear of gaining weight and a distorted body image, leading to excessive weight loss and malnutrition.

Metabolism

The biochemical processes that occur within a living organism to maintain life, involving the conversion of food to energy and building materials.

Tachycardia

An abnormally rapid heart rate, often defined as a resting heart rate over 100 beats per minute.