You Would Like to Hold a Protective Put Position on the Stock

question 89

Multiple Choice

You would like to hold a protective put position on the stock of Avalon Corporation to lock in a guaranteed minimum value of $50 at year-end. Avalon currently sells for $50. Over the next year, the stock price will increase by 10% or decrease by 10%. The T-bill rate is 5%. Unfortunately, no put options are traded on Avalon Co.
Suppose the desired put options with X = 50 were traded. How much would it cost to purchase?

• A) $1.19
• B) $2.38
• C) $5
• D) $3.33

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

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Identify key figures and their contributions to public health and nursing.