Alicia Owns 500 Shares of Danube Stock

question 49

Multiple Choice

Alicia owns 500 shares of Danube stock.She thinks the market price will continue to rise but would like to ensure that she can get at least $47.50 a share should she decide to sell her shares. The 47.50 call option is quoted at $1.05 bid,$1.15 ask.The 47.50 put is quoted at $0.80 bid,$0.85 ask.How much will it cost her to ensure that she can sell all of her shares for at least $47.50 each?

• A) $805
• B) $740
• C) $670
• D) $530
• E) $425

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Definitions:

Proinflammatory Cytokines

Signaling molecules released by the immune system that promote inflammation, playing a crucial role in immune responses.

Higher Rates of Inflammation

An increased level of the body's immune response, resulting in more swelling, redness, heat, and often pain in tissues affected by injury or disease.

Asthma Development

The process by which individuals acquire asthma, a chronic lung disease that inflames and narrows the airways.

Immune System

The body's defense system comprising organs, tissues, cells, and proteins that work together to fight off pathogens and foreign substances.