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).

---

Definitions:

Social Rejection

The experience of being excluded or dismissed by others or a group, leading to psychological distress.

Decreased Self-Regulation

A reduction in one's ability to control or manage their emotions, desires, or actions effectively.

Increased Hunger

Describes a physiological state where there is an enhanced desire or need to consume food.

Cognitive Tasks

Mental activities that require thinking, processing, and understanding, such as problem-solving, decision-making, and memory recall.