Multiple Choice
Suppose a stock is currently priced at $40 per share, a February 35 call has a premium of $8, and a February 45 put has a premium of $7. If you wanted to buy this stock below the current market price using options, at what effective price could you buy the stock if the option is exercised? (Ignore brokerage commissions.)
A) 35
B) 37
C) 38
D) 39
Correct Answer:
Verified
Correct Answer:
Verified
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