Assume That You Purchased Shares of a Stock at a Price

question 15

Multiple Choice

Assume that you purchased shares of a stock at a price of $35 per share. At this time, you purchased a put option with a $35 strike price of $3. The stock currently trades at $40. Calculate the dollar return on this option strategy.

• A) $3
• B) -$2
• C) $2
• D) -$3
• E) $0

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Definitions:

Secular

Not religious; not connected with a church, synagogue, mosque, pagoda, temple, or other religious institution.

Rationality

The quality of being based on or in accordance with reason or logic, often characterized by making decisions through systematic, logical, and objective criteria.

Moral Development

The process by which individuals develop their understanding of morality and ethical behavior.

Character Formation

The process of developing and defining one's personal beliefs, values, and behaviors.