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QUESTION 10 The current market price of a share of Dell stock is $50. If a put option on this stock has a strike price
QUESTION 10 The current market price of a share of Dell stock is $50. If a put option on this stock has a strike price of $47 and a premium of $3, the put a. sells for a lower price than if the market price of Dell stock is $42. b. is in the money. c. sells for a higher price than if the market price of Dell stock is $42. d. is at the money. QUESTION 11 The potential loss for a holder of a call option on a stock is a. increasing when the stock price is decreasing. b. equal to the call premium. C. equal to the difference between stock price and strike price d. unlimited
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