What Is the Cost of Two November $25 Put Option

question 63

Multiple Choice

What is the cost of two November $25 put option contracts on Dove stock given the following price quotes?

• A)$0.15
• B)$0.30
• C)$1.50
• D)$15.00
• E)$30.00

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Equilibrium GDP

The level of Gross Domestic Product at which total production equals total spending, indicating a state of economic balance without tendency to change.

Full-employment Level

signifies an economic condition where all who are able and willing to work at current wage rates have employment opportunities.

National Debt

The entirety of funds that a country's governmental body has taken on as debt through several mechanisms.