Zasha Wrote a Put Option on Johnson & Johnson Stock

question 116

Multiple Choice

Zasha wrote a put option on Johnson & Johnson stock with a striking price of $53 per share.At the expiration date, Johnson & Johnson was selling for $50 per share.Which statement best describes the action that Zasha should or must take?

• A)Zasha will do nothing because the market price is lower than the striking price.
• B)Zasha is obliged to buy the Johnson & Johnson shares at $53, even though the market price $3.00 lower.
• C)Zasha must sell the Johnson & Johnson stock for $53 per share.
• D)Zasha has the right to sell Johnson & Johnson stock at $3.00 per share over the market price.

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Definitions:

Leadership Grid

The Leadership Grid, developed by Blake and Mouton, is a model that identifies five different leadership styles based on the concern for people and concern for production.

Leadership Style

The approach and methods used by a leader to guide, motivate, and manage a team or organization.

Leadership Grid

A framework that identifies five leadership styles based on concern for people and concern for production.

Task Behaviors

The actions and activities leaders engage in that are directed towards goal achievement and task completion.