An Investor Purchased Both a Put and a Call Option

question 29

Multiple Choice

An investor purchased both a put and a call option on a stock with exercise prices of $40 a share. The put cost $1 and the call cost $3. When the options expire the stock price is $43. What is the investor's net profit?

• A) -$1
• B) $0
• C) $3
• D)$2

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Definitions:

Media Relations

The strategic practice of working with the media to communicate an organization’s message, manage its public image, or handle public relations crises.

Framing

The act of constructing a communication message in a way that influences how the audience perceives it.

MoneyWi$e Program

A financial education initiative designed to enhance financial literacy and provide resources to help individuals manage their personal finances.

Tactical PR Goals

Short-term objectives set within public relations strategies to achieve specific outcomes.