AA Company: Price 35 Puts -You Own 300 Shares of AA Stock That You Purchased

question 67

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 own 300 shares of AA stock that you purchased for $22 a share. You would like to have the right to sell your shares for $35 a share. What will be the cost to obtain this right?

• A) $75
• B) $90
• C) $120
• D) $135
• E) $150

---

Definitions:

Cyclohexylamine

An organic compound derived from cyclohexane where one hydrogen atom is replaced by an amine group, known for its use in creating various chemical products.

Hydrocarbon Impurity

Unintended hydrocarbon molecules present within a sample or product, which can alter its properties or reactions.

Solubility Differences

Variations in the ability of substances to dissolve in solvents, influenced by factors such as temperature, pressure, and chemical nature.

Amyloid Plaques

Accumulations of misfolded proteins, mainly found in the brain tissues, associated with numerous neurodegenerative diseases, such as Alzheimer's disease.