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:

Retrieval Systems

Mechanisms or processes used for recovering information or items from storage locations.

Distribution Facilities

Warehouses or storage sites where goods are held before they are distributed to the final customer.

Intermittent Processes

Operations or production processes that are not continuous but occur at irregular intervals.

Labor Intensity

The degree to which a process or industry relies on human labor rather than automation or machinery.