Rex Bought a Put on Alpha Stock with a Strike

question 6

Multiple Choice

Rex bought a put on Alpha stock with a strike price of $35 when the market price of Alpha stock was $33 a share. Alpha is currently selling at $34 a share. Which of the following statements are true given this information?
I. Rex's option is worth at least $100 today.
II. Rex's option is worthless today.
III. Rex's option has more value today than when he bought it.
IV. Rex's option has less value today than when he bought it.

• A) I and III only
• B) I and IV only
• C) II and III only
• D) II and IV only

Understand the concept of attitudes, how they are formed, and their significance in personal and professional contexts.

Distinguish between values and attitudes and recognize their interplay in shaping behavior and perceptions.

Describe the impact of cultural differences on views of power, authority, and value systems.

Explain the concepts of instrumental and terminal values and their relevance to goal setting and achievement.

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Definitions:

Ultra Vires

Acts or transactions conducted by a corporation that fall outside the scope of powers and purposes defined by its charter or laws; such acts may be invalid or unauthorized.

Clayton Act

The Clayton Act is a U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Act.

Interlocking Directorates

In antitrust law, a situation that occurs when individuals serve as directors for two corporations that are competitors.

Golden Parachute

A substantial financial package granted to a corporate executive upon termination, often after a takeover or merger.