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:

Twin-Study Method

A research strategy used in genetics and psychology to differentiate between genetic and environmental influences by comparing the similarities between monozygotic (identical) and dizygotic (fraternal) twins.

Adoptive Families

Families where one or more children have been legally adopted, creating a familial bond.

Twin-Study Method

A research design used to estimate the genetic and environmental influences on behavior by comparing the similarities between identical and fraternal twins.