Of the Following Four Put Options That Can Be Purchased

question 65

Multiple Choice

Of the following four put options that can be purchased on a stock,which would you expect to have the highest price? (All option months are in the same calendar year.)

• A) September put; $65 exercise price
• B) September put; $75 exercise price
• C) December put; $65 exercise price
• D) December put; $75 exercise price

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Definitions:

Retailers

Businesses or individuals engaged in the selling of goods or merchandise directly to consumers, typically in small quantities.

Cyclical Unemployment

The increase in unemployment that occurs during recessions and downturns in the economic cycle, typically resulting from a decreased demand for goods and services.

Structural Unemployment

Unemployment caused by a mismatch between the skills or location of workers and the requirements of the job market.

Frictional Unemployment

Short-term unemployment that occurs when individuals are between jobs or entering the labor market for the first time.