Refer to the Listed Stock Option Price Quote from February

question 29

Multiple Choice

Refer to the Listed Stock Option Price Quote from February and assume it is now January:

Based on the option quote,the June put should cost
I. more than $477.
II. more than $665.
III. more than the March and June 60 calls.
IV. more than the March 60 call but no more than the June 60 call.

• A)I only
• B)I,II,and IV only
• C)I,II,and III only
• D)I and III only
• E)IV only

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Definitions:

Firm Commitment Underwriting

A type of underwriting in which an underwriter commits to buying all the securities offered by the issuer and assumes full financial responsibility for any unsold securities.

Underwriting Syndicate

A group of underwriters who come together to share the financial risk of underwriting large transactions, such as issuing new securities.