A Stock Has Both a Call and a Put Option

question 20

Multiple Choice

A stock has both a call and a put option outstanding. The exercise price was set equal to the stock price. If the option were to expire now what would be the minimum value of the call and the put respectively?

• A) (ST- E); ≥ 0.
• B) 0; (ST- E).
• C) <0; >0.
• D) 0; 0.
• E) (E - ST); (ST- E).

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Definitions:

Redefining Stage

A phase in group development where members reassess their tasks and relationships, leading to adjustments in group structure or objectives.

Group Development

The process through which a group evolves and matures in its functionality, relationships, and structure over time.

Informal Groups

Informal Groups are collections of individuals in a workplace or other setting who associate with each other based on common interests or friendships, rather than organizational structure.

Cognitive Needs

The mental requirements that drive individuals to seek knowledge, information, and understanding, necessary for problem-solving and intellectual growth.