If a Microsoft January 20 Put Option with a Strike

question 43

Multiple Choice

If a Microsoft January 20 put option with a strike price of $20 were about to expire and the market price of the underlying Microsoft stock was $15.00, the price of the put option would have to be __________ to eliminate arbitrage opportunities.

• A)$5.00
• B)$10.00
• C)$15.00
• D)$25.00
• E)none of the above.

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Refers to Harry Harlow, a psychologist known for his research on maternal separation and social isolation in rhesus monkeys.

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