What Is the Put Option Premium Given the Following Information

question 25

Multiple Choice

What is the put option premium given the following information?

• A)$1.58
• B)$2.01
• C)$2.59
• D)$3.63
• E)$4.15

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Definitions:

Gray Market Activity

Trading of goods through distribution channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer.

Global Pricing

The strategy of setting prices for products or services on a global scale, taking into account currency differences, economic conditions, and local market demand.

Market Activity

The volume of transactions or trades and the behavior of participants in financial markets, reflecting the degree of vibrancy or fluctuations.

Skimming

A pricing strategy where a company sets a high price for a product and sells to the segment that is willing to pay a premium.