RTF Stock Is Currently Priced at $19

question 63

Multiple Choice

RTF stock is currently priced at $19.13 a share.The only options on this stock are the March $25 call option,which is priced at $.58,and the March $25 put which is priced at $5.99.Flo would like the option to purchase 300 shares of RTF should the price suddenly rise as she expects.Her main concern is that the price will double after hours and she will miss out on some potential profits.She also realizes the stock is highly risky and she could lose her entire investment,which she prefers not to do.What should she do to help offset her concerns?

• A)Sell 300 put option contracts and receive $1,797
• B)Sell 3 call option contracts and receive $174
• C)Buy 300 call option contracts at a cost of $1.74
• D)Buy 3 put option contracts at a cost of $17.97
• E)Buy 3 call option contracts at a cost of $174

Understand the difference between open-ended, closed-ended, and hypothetical questions.

Recognize the importance and techniques of active listening in interviews.

Identify interpersonal skills essential for conducting effective interviews.

Understand the preparation and summarization process for client interviews.

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Definitions:

Unlimited Liability

A legal status where the business owner's personal assets can be used to satisfy the debts and liabilities of the business.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make decisions regarding the company's direction and policies.