You Are Considering Purchasing a Put Option on a Stock

question 26

Multiple Choice

You are considering purchasing a put option on a stock with a current price of $33. The exercise price is $35, and the price of the corresponding call option is $2.25. According to the put-call parity theorem, if the risk-free rate of interest is 4% and there are 90 days until expiration, the value of the put should be ________.

• A) $2.25
• B) $3.91
• C) $4.05
• D) $5.52

Demonstrate an understanding of the physical and mental preparation required for effective listening.

Recognize the importance of summarizing and paraphrasing in achieving effective communication.

Identify the structure and function of accessory glands in the male reproductive system.

Understand the anatomy of the penis and its components.

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Definitions:

Digestion

The biological process by which the complex molecules in food are broken down into simpler ones that can be absorbed and utilized by the body.

Pancreatic Juice

A fluid secreted by the pancreas that contains digestive enzymes and bicarbonate ions and assists in the digestion of proteins, fats, and carbohydrates in the small intestine.

Major Food Groups

Categories of foods sharing similar nutritional properties, including fruits, vegetables, grains, protein foods, and dairy.

Gastric Juice

A digestive fluid, secreted by the stomach, containing hydrochloric acid, digestive enzymes, and intrinsic factor, necessary for the digestion of food and absorption of vitamin B12.