Use These Option Quotes to Answer This Question

question 12

Multiple Choice

Use these option quotes to answer this question:

-You would like to have the right to purchase 200 shares of ZZ Industries stock at a price of $32.50 a share.How much will it cost you to buy options to meet this objective?

• A) $103.11
• B) $12.90
• C) $374.00
• D) $430.00
• E) $561.00

---

Definitions:

Unaware

Lacking knowledge or awareness about something.

Equity of Redemption

The right of a debtor to reclaim property that has been used as collateral after the debt obligation has been fully paid.

Hypothecation

The practice of pledging assets as collateral to secure a loan, without transferring ownership of the collateral.

Legal Title

The formal right of ownership of property, recognized and protected by law.