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

---

Definitions:

Behavioral Tendencies

Patterns or predispositions in individuals' behavior, often influenced by psychological factors.

Consumer's Values

The guiding principles or standards of behavior that influence the choices and actions of individuals as consumers.

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives.

Decision Significance

The importance or impact of a decision in terms of outcomes or consequences.