AA Company: Price 35 Puts -You Would Like to Have the Right to Purchase 500

question 43

Multiple Choice

AA Company: Price 35.20

Calls:

$\begin{array}{|r|r|r|r|r|r|r|r|}\hline \text { Strike } & \text { Symbol } & \text { Last } & \text { Change } & \text { Bid } & \text { Ask } & \text { Volume } & \text { Open Int. } \\\hline 27.50 & \text { AAEY } & 7.70 & +0.28 & 7.70 & 7.80 & 2 & 289 \\\hline 30.00 & \text { AAEF } & 5.20 & +0.36 & 5.20 & 5.30 & 453 & 1,306 \\\hline 32.50 & \text { AAEZ } & 2.80 & +0.30 & 2.75 & 2.80 & 520 & 3,609 \\\hline 35.00 & \text { AAEG } & 0.45 & +0.20 & 0.40 & 0.50 & 656 & 5,372 \\\hline\end{array}$

Puts:

$\begin{array}{|r|l|r|r|r|r|r|r|}\hline \text { Strike } & \text { Symbol } & \text { Last } & \text { Change } & \text { Bid } & \text { Ask } & \text { Volume } & \text { Open Int. } \\\hline 35.00 & \text { AAQG } & 0.30 & -0.20 & 0.25 & 0.30 & 19 & 1.607 \\\hline 37.50 & \mathrm{AAQS} & 2.35 & -1.30 & 2.30 & 2.40 & 11 & 114 \\\hline 40.00 & \mathrm{AAQH} & 4.80 & -0.10 & 4.80 & 4.90 & 2 & 13 \\\hline\end{array}$
-You would like to have the right to purchase 500 shares of AA stock at a price of $35 a share. How much will it cost you to buy options to meets this objective?

• A) $125
• B) $150
• C) $200
• D) $250
• E) $300

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Definitions:

Defense

Psychological mechanisms or strategies employed by individuals to protect themselves from perceived threats or to manage uncomfortable emotions.

Distortion

The alteration of the original shape or other characteristics of something, often in a way that misrepresents or changes meaning or perception.

Rogers

Refers to Carl Rogers, a prominent figure in psychology known for his contributions to humanistic psychology and the client-centered therapy approach.

Fully Functioning

A state described by Carl Rogers where an individual is living at their fullest potential, open to experience, and in harmony with their inner feelings and desires.