You Bought Both a Call and a Put Contract on ABC

question 48

Multiple Choice

You bought both a call and a put contract on ABC stock with a strike price of $30. Both expire on the same day. If the stock price at expiration is $32, you will _________ the call and _________ the put.

• A) Exercise; exercise
• B) Exercise; not exercise
• C) Not exercise; exercise
• D) Not exercise; not exercise
• E) Exercise; continue to hold

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Definitions:

Driveshaft Assembly

A mechanical component used to transmit torque from the vehicle's engine to its wheels.

Chassis

The base frame of a vehicle to which various components are attached.

Center Support Bearing

A hanger bearing used to suspend the first section of a driveshaft in a double driveshaft assembly. It is required on truck driveshafts when the distance between the transmission and drive carrier exceeds 70 inches (178 cm) and consists of a rolling bearing element supported by a rubber insulator and bracket. Also known as hanger bearing.

Maximum Length

The greatest length allowed or possible for a given object, system, or dimension.