You Want the Right,but Not the Obligation,to Sell 600 Shares

question 58

Multiple Choice

You want the right,but not the obligation,to sell 600 shares of ZZ Industries stock at a price of $35 a share.How much will it cost you to establish this option position?

• A)$422
• B)$408
• C)$360
• D)$378
• E)$382

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The combined quantity of a product or service that consumers are inclined and ready to purchase at an identified price.

Excess Demand

A market condition where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to upward pressure on prices.

Selection Bias

Selection bias occurs when the sample used is not random.