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@ 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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