A Stock Has a Spot Price of $55

question 13

Multiple Choice

A stock has a spot price of $55. Its May options are about to expire. One of its puts is worth $5 and one of its calls is worth $10. The exercise price of the put must be ________ and the exercise price of the call must be ________.

• A)$50; $45
• B)$55; $55
• C)$60; $45
• D)$60; $50
• E)One cannot tell from the information given.

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Definitions:

Intellectual Stimulation

The aspect of leadership that challenges followers to think, question assumptions, and explore new ideas.

Charisma

A compelling attractiveness or charm that can inspire devotion in others, often seen as a unique personal quality.

Leader's Goal

The specific objectives or targets set by individuals in leadership positions to guide and shape the direction of their team or organization.

Reward and Punishment

Behavioral reinforcement concepts where rewards are used to reinforce desired behaviors, whereas punishments are applied to reduce or eliminate undesired behaviors.