The Price of a Stock Is $64

question 2

Multiple Choice

The price of a stock is $64.A trader buys 1 put option contract on the stock with a strike price of $60 when the option price is $10.When does the trader make a profit?

• A) When the stock price is below $60
• B) When the stock price is below $64
• C) When the stock price is below $54
• D) When the stock price is below $50

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Definitions:

Colony of Polyps

A group of many individual polyps (small, sessile organisms) that are genetically identical and physically connected, often found in corals.

Cnidaria

A phylum of aquatic invertebrate animals that includes jellyfish, corals, and sea anemones, characterized by a simple body plan with radial symmetry.

Nervous System

A complex network of neurons that coordinates body functions and transmits signals between different body parts.

Sponges

Simple aquatic animals belonging to the phylum Porifera, characterized by their porous bodies and an ability to filter feed on particles suspended in water.