The 4750 Put on a Stock Is Trading at 1

question 78

Multiple Choice

The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask. To buy one option contract, you must pay ________ at the time the contract is purchased.

• A)$1.32
• B)$132.00
• C)$137.00
• D)$4,613.00
• E)$4,882.00

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Definitions:

Basic Standard Deduction

represents the portion of income not subject to tax that can reduce the taxable income, set by the IRS, varying by filing status.

Dependent

An individual, typically a child or family member, who relies on another for financial support and qualifies for certain tax benefits.

Earned Income

Income generated from active employment and work, including wages, salaries, tips, and other compensation.

Qualifying Widow(er)

A tax filing status allowing a surviving spouse with a dependent child to use married filing jointly tax rates for up to two years after the year of their spouse's death.