You Purchased a Stock for $43 a Share,sold a Call

question 55

Multiple Choice

You purchased a stock for $43 a share,sold a call option with an exercise price of $40,and bought a put option with an exercise price of $45.What will be the value of your position when the options expire if the stock price is $48 a share?

• A) $48
• B) $46
• C) $56
• D) $40

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Definitions:

Homogenous

Products, services, or groups that are identical, similar in nature, and indistinguishable from each other in the eyes of the consumer.

Substitute Product

A product or service that consumers can use in place of another to satisfy the same need or desire.

Complementary Product

A product that adds value to another, typically unrelated product when used together.

Energy Drink

A type of beverage containing stimulant compounds, typically caffeine, designed to provide mental and physical stimulation.