USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 28

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 16.6. What would the net value of a covered call position be if the stock price at expiration is $35?

• A) $29.00
• B) $30.65
• C) $33.55
• D) $36.00
• E) $36.65

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Definitions:

Mala Prohibita

Refers to acts that are crimes only because they are prohibited by law, not because they are inherently immoral or harmful.

Unlawful Act

An action that is forbidden by law or legislation.

Statute

A written law passed by a legislative body at the federal, state, or local level, which governs society and is enforceable by the courts.

Summary Judgment

A summary judgment is a legal determination made by a court without a full trial, granted when there is no dispute over the material facts of the case and one party is entitled to judgment as a matter of law.