You Purchased a Stock for $36 a Share,a Call Option

question 90

Multiple Choice

You purchased a stock for $36 a share,a call option with an exercise price of $35,and a put option with an exercise price of $34.What will be the value of your position when the options expire if the stock price is $37?

• A) $39
• B) $37
• C) $40
• D) $2

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Definitions:

Productivity Inefficiencies

Situations where resources are not utilized in the most effective way, leading to decreased output or increased costs without proportional benefits.

Lost Revenue

Refers to the money that a business could have earned but did not, due to various factors such as cancelled services or unsold inventory.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Continuous-process Production

A manufacturing method where materials are continuously fed into the process, resulting in a constant output of finished products.