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Alicia Owns 500 Shares of Danube Stock

question 49

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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?

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Definitions:

Irish

Pertaining to the people of Ireland or of Irish descent, often in the context of culture, history, and diasporic identity.

Italian

Related to Italy, its people, culture, or language.

Jewish Immigrants

Individuals of Jewish descent who have moved from their native countries to settle in a foreign land, often in search of better opportunities or to escape persecution.

Marketing Mix

A business tool comprising four elements known as the 4Ps: Product, Price, Place, and Promotion, used to meet customer needs and achieve business goals.

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