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 sell this stock above the current market price using options, at what effective price could you sell the stock if the option is exercised? (Ignore brokerage commissions.)
A) 41
B) 42
C) 43
D) 45
Correct Answer:

Verified
Correct Answer:
Verified
Q29: If a person writes a covered call
Q30: Suppose a stock is currently priced at
Q31: The systematic risk in a portfolio can
Q32: Suppose a stock is currently priced at
Q33: If you buy a call option with
Q35: A long position is a(n)<br>A) long-term investment<br>B)
Q36: If someone writes a naked call, they
Q37: A person who sought to sell stock
Q38: Which of the following terms is least
Q39: Suppose you are managing a stock portfolio