The Following Prices Are Available for Call and Put Options

question 40

Multiple Choice

The following prices are available for call and put options on a stock priced at $50.The risk-free rate is 6 percent and the volatility is 0.35.The March options have 90 days remaining and the June options have 180 days remaining.The Black-Scholes model was used to obtain the prices.
Use this information to answer questions 1 through 20.Assume that each transaction consists of one contract (for 100 shares) unless otherwise indicated.
Answer questions 12 through 17 about a long straddle constructed using the June 50 options.
-What is the profit if the stock price at expiration is at $64.75?

• A)-$971
• B)$1,475
• C)-$3,525
• D)$500
• E)none of the above

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A registered nurse in the operating room responsible for overseeing patient care and managing the surgical environment.

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A trained professional who provides surgical care to patients in the operating room under the supervision of a surgeon.

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Substances that kill or inhibit the growth of microorganisms, including antibiotics, antivirals, antifungals, and antiseptics.

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The process of thoroughly cleaning the hands and arms prior to surgery to remove germs and prevent infection.