Which of the Following Is Correct for the Owner of a September

question 101

Multiple Choice

Which of the following is correct for the owner of a September put,valued at $20,on CBA Corp.with a strike price of $80? CBA currently trades at $67.

• A) The option will continue to gain value until its September expiration.
• B) The owner profits $13 per share by exercising now.
• C) Further decreases in CBA stock price will be translated directly into additional option value.
• D) $20 is the maximum value for this option.

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Definitions:

Oral Communication

The process of expressing information or ideas by word of mouth.

Nonverbal Messages

Communication without the use of spoken language, conveyed through body language, facial expressions, gestures, and other physical cues.

Major Points

The most important or central aspects, ideas, or arguments within a discussion, presentation, or document.

Assertive Communication

The practice of expressing one's views and wishes directly and respectfully, without being passively accepting or aggressively confrontational.