Suppose You Are Looking to Exploit Opportunities in the Options

question 32

Multiple Choice

Suppose you are looking to exploit opportunities in the options markets. The price of a call option on Apple computers with a maturity of one year and strike price $150 is $15, and the price of the stock is $140. What should the price of a put option be to preclude profitable opportunities? The risk-free rate of interest is 5%.

• A) $21.45
• B) $17.86
• C) $25.00
• D) $19.63

---

Definitions:

Xenophobia

An irrational fear or hatred of foreigners or strangers, often leading to discrimination and hostility.

Hostility

Feelings of intense anger or animosity toward individuals or groups, often resulting in aggressive or antagonistic behaviors.

Immigrants

People residing in Canada who were born outside of Canada; this category excludes Canadian citizens born outside of Canada and people residing in Canada on temporary status, such as those with a student visa or temporary foreign workers.

Ethnic Enclaves

Geographical areas or neighborhoods predominantly inhabited by individuals from the same ethnic background, preserving cultural practices.