You Own 300 Shares of Stock Which You Would Like

question 27

Multiple Choice

You own 300 shares of stock which you would like to have the right to sell at $40 a share.The 40 call option is quoted at $0.35 bid,$0.40 ask.The 40 put is quoted at $0.45 bid,$0.50 ask.How much will it cost you to obtain the right to sell all of your shares at $40 a share?

• A) $135
• B) $50
• C) $150
• D) $105
• E) $75

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Definitions:

Nervous Tissue

Comprised of neurons and supporting cells, this tissue is central to the control of bodily functions and the processing of information.

Expulsion Stage

The final stage of childbirth in which the baby is delivered from the womb through the birth canal to the outside world.

Fetus

A developing mammal or vertebrate after the embryonic stage and before birth, during which significant growth and organ development occur.

Germ Layer

One of the three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all tissues and organs develop.