The Following Prices Are Available for Call and Put Options

question 30

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 18 through 20 about a long box spread using the June 50 and 55 options.
-What is the profit if the stock price at expiration is $52.50?

• A)$16
• B)$500
• C)-$234
• D)$250
• E)none of the above

Understand the SEC's filing requirements for different company sizes and phases.

Recognize the different categories and purposes of filings with the SEC.

Identify the specific SEC forms used for various securities registration and employee stock plans.

Grasp the role and requirements of the PCAOB regarding public accounting firms.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, including utilities, rent for the manufacturing facilities, and salaries of non-direct employees.

Raw Materials Transactions

Financial and operational activities related to the acquisition and use of raw materials in the production process.

November

November, which is the month number eleven in the Gregorian calendar.

Raw Materials Account

An accounting record that tracks the cost of raw materials purchased by a company intended for use in production.