20) The most important factor affecting the market price of a put or call is the A) market interest rate. B) expiration date. C) price behavior and volatility of the underlying common stock. D) price behavior of the corresponding warrant. 21) The strike price of a put option is the price A) an investor must pay for the options contract. B) of the underlying stock at the time that the options contract is purchased. C) the price at which the underlying stock can be sold. D) the price at which the underlying stock can be bought. 22) The two provisions which investors should carefully consider when evaluating stock options are the A) strike price and the exchange ratio. B) time until expiration and the strike price. C) leverage ratio and the time to maturity. D) premium and the discount. 23) For all practical purposes, listed stock options always expire A) on the last business day of the expiration month B) on the first Monday of every calendar quarter. C) on the third Friday of the expiration month. D) three months from the date of the option purchase 24) Grant purchased one call on XYZ stock at an exercise price of $25. The market price of XYZ stock when Grant purchased the call was $24 a share. XYZ is currently priced at $30 a share. Grant paid $120 to buy the call. How much profit will Grant make if he exercises the option today and then sells the shares? Ignore all transaction-related costs. A) $380 B) $480 C) $500 D) $600 25) Which of the following represent in-the-money options? - a call when the market price exceeds the strike price a call when the strike price exceeds the market price I. a put when the market price exceeds the strike price "a put when the strike price exceeds the market price I and III only I and IV only I and III only 11 and IV only