The 4750 Put on a Stock Is Trading at 1

question 78

Multiple Choice

The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask. To buy one option contract, you must pay ________ at the time the contract is purchased.

• A)$1.32
• B)$132.00
• C)$137.00
• D)$4,613.00
• E)$4,882.00

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Definitions:

Flowering Plants

Plants belonging to the group Angiosperms, characterized by bearing flowers and seeds enclosed within a fruit.

Conifers

A group of cone-bearing seed plants with vascular tissue, mostly evergreens, that include pines, spruces, and firs.

Age

A measurement of the length of time an individual, organism, or object has existed, typically expressed in units such as years, months, or days.

Twig

A small, slender branch of a tree or shrub, often representing the growth of the current or previous year.