Use These Option Quotes to Answer This Question

question 12

Multiple Choice

Use these option quotes to answer this question:

-You would like to have the right to purchase 200 shares of ZZ Industries stock at a price of $32.50 a share.How much will it cost you to buy options to meet this objective?

• A) $103.11
• B) $12.90
• C) $374.00
• D) $430.00
• E) $561.00

---

Definitions:

Cost Of The Resource

The total financial investment required to acquire, maintain, and operate a resource over its useful life.

Depletion

The allocation of the cost of natural resources over their useful life, reflecting the consumption of the resource.

Metal Ores

Naturally occurring minerals from which metals can be extracted economically.

Amortization

Amortization refers to the process of gradually writing off the initial cost of an asset over a period.