Refer to the Listed Stock Option Price Quote from February

question 3

Multiple Choice

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

If you buy the March put and don't exercise before contract maturity,you will make a profit if the stock price at maturity ________ from today's price.

• A)increases by more than 9.65 percent
• B)increases by more than 4.57 percent
• C)decreases by more than 3.94 percent
• D)decreases by more than 11.99 percent
• E)does not decrease by more than 5.64 percent

---

Definitions:

Average Prices

The mean cost calculated by dividing the total sum of all prices by the number of prices in the dataset.

Supermarkets

Large retail market places typically offering a wide variety of goods including food, clothing, and household items.

P-values

An indication of the strength of the evidence against the null hypothesis, represented as a probability that measures the likelihood of the observed outcomes under the assumption that the null hypothesis is valid.

Matched Pairs

A study design where subjects are paired based on certain characteristics, and one from each pair is assigned to the treatment group and the other to the control.