Steve Bought 300 Shares of Stock at a Price of $20

question 34

Multiple Choice

Steve bought 300 shares of stock at a price of $20 per share. The price of the stock then went up to $33 per share so Steve decided to hedge his position by purchasing 3 puts at a cost of $120 each. The puts have an exercise price of 30. One week prior to the expiration of the puts, the price of the stock was at $22 per share. If Steve closed out all of his positions at that time, he would have earned a net profit of

• A) $200.
• B) $240.
• C) $2,640.
• D) $3,000.

Master the concept of term deposits and their maturity dates.

Apply interest rate calculations to real-world financial planning and decision-making.

Analyze the impact of varying interest rates on the growth of investments over time.

Understand the concept of simple interest.

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Definitions:

Multinational Corporation

A corporate organization that owns or controls production of goods or services in one or more countries other than its home country.

Foreign Exchange

The trading of currencies from different countries against each other.

Mutual Benefits

A situation or agreement in which all parties involved gain advantages or profits.

Multinational Corporation

An enterprise operating in several countries but managed from one (home) country, typically having a centralized head office where they coordinate global management.