Question
@ Choose the correct Answers in fallowing MCQ. 9. The difference between a put and a call option is that: a. A put is an
@ Choose the correct Answers in fallowing MCQ.
9. The difference between a put and a call option is that:
a. A put is an option to sell common stock at a specified price while a call is an option to buy common stock at a specified price b. A call is an option to sell common stock at a specified price while a put is an option to buy common stock at a specified price c. A call is an option to buy common stock at a specified price while a put is the option to buy preferred stock at a specified price d. A call is an option to sell common stock at a specified price while a put is the option to sell preferred stock at a specified price
Answer: ( )
10. A stock is selling for $45.75 with a call option available at a $40 strike that has a premium of $7.50. What percentage of the common stock price does the speculative premium represent?
a. 14.375% b. 12.57% c. 4.38% d. 3.83%
Answer: ( )
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