You Have Written a Put Option on ABC Stock

question 94

Multiple Choice

You have written a put option on ABC stock. The exercise price is $30 and the current stock price is $31.The option payoff wills _________ if the stock price increases by $1 and the payoff will _________ if the stock price decreases by $1.

• A) Increase; decrease
• B) Decrease; increase
• C) Remain the same; increase
• D) Remain the same; decrease
• E) Remain the same; remain the same

Relate the concept of usury laws to interest rates and their impact on borrowers and lenders.

Understand the economic and ethical arguments surrounding the rent of land.

Discern the effect of external regulations on price mechanisms.

Explain the influence of historical and philosophical perspectives on economic concepts like usury.

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Definitions:

Array Index

An array index is a numerical or integral value used to identify and access a specific element within an array.

Nonnegative Integer

An integer that is either greater than or equal to zero, including all positive integers and zero.

Alpha

Alpha often refers to the level of transparency of a pixel in computer graphics, with a range from full transparency to full opacity.

Beta

A phase in software development where features are complete but the software may still contain bugs; it follows the alpha phase and precedes the final release.