What Is the Put Option Premium Given the Following Information

question 42

Multiple Choice

What is the put option premium given the following information?

• A) $7.49
• B) $7.98
• C) $8.28
• D) $8.76
• E) $9.64

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Definitions:

Responsible Person Doctrine

A legal principle that holds an individual personally liable for unpaid taxes or obligations of a business, based on the level of control or authority they have over the financial operations of the entity.

Insider Information

Insider information consists of non-public, material information about a company or its securities that could influence an investor's decision to buy, sell, or hold the stock.

Par-Value Stock

Shares of a company that have a minimum fixed face value; the value is set at the time the shares are issued.

Stock Certificate

A physical document that represents ownership of a certain number of shares in a corporation.