USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 10

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for Citigroup

-Refer to Exhibit 16.4. Calculate the net value of a protective put position at a stock price at expiration of $20 and a stock price at expiration of $45.

• A) $6.35, $18.85
• B) $29.65, $42.15
• C) $21.65, $34.15
• D) $8, $8
• E) -$8, -$8

---

Definitions:

Copyright Statement

A legal notice or declaration that identifies the copyright holder and outlines the conditions under which the material can be used.

Connotations

The implied or associative meanings of a word or expression, in addition to its explicit or direct meaning.

Frugal

Frugal is a term that describes the practice of being economical with resources, minimizing waste and spending less in order to save money.

Cheap

Low in cost; inexpensive or affordable in price.