A Stock Currently Trades at $110

question 94

Multiple Choice

A stock currently trades at $110.June put options on the stock with a strike price of $100 are priced at $5.25.Calculate the dollar return on one put contract.

• A) -$525
• B) $1000
• C) $0
• D) -$1000
• E) $525

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Definitions:

Substitutable Resources

Resources in a firm that can be replaced by other resources to perform the same function, affecting competitive advantage and strategic planning.

Value Chain

A series of activities performed by a company to deliver a valuable product or service to the market.

Strategic Importance

Significance associated with a decision or action that affects the long-term objectives and competitive positioning of an organization.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives.