Alicia Owns 600 Shares of Danube Stock

question 28

Multiple Choice

Alicia owns 600 shares of Danube stock. She thinks the market price will continue to rise but would like to ensure that she can get at least $47.50 a share should she decide to sell her shares. The 47.50 call option is quoted at $1.15 bid, $1.20 ask. The 47.50 put is quoted at $0.90 bid, $0.95 ask. How much will it cost her to ensure that she can sell all of her shares for at least $47.50 each?

• A) $805
• B) $840
• C) $570
• D) $630
• E) $690

---

Definitions:

Data File

A file that contains data, often structured in a specific format, that can be used or processed by a computer program.

C Program

A program written in the C programming language, which is a general-purpose, procedural computer programming language.

External Files

Refer to files that are created, stored, and accessed outside of the executable program's memory space, often used for data storage, configuration, or logging.

Internal Name

A name used within a program's code to identify a variable, function, or other element, not visible to the end user.