Answer question 25

Ell l3 9 . Intermediate FinanceExam 1 Design Layout References Mailings Review View v L+ Share A AaBchDdEe AaBchDdEe AaBchDc Normal No Spacing Heading 1 E v X lCambria v, 11 'l AA Av [535' Q Pastee BIEVabesz2 A'Q'_' 6 Office Update To keep upto-date with security updates, fixes, and improvements, choose Check for Updates. AaBchDdEe AaBbC AaEchDdEe ' ['0 Heading 2 Title Subtitle Styles Pane Check for Updates = 510-32 3 = -$13 which would equal 30 since a payoff can't be negative Since the current stock price is more than the strike price, it's not protable to exercise the option. I would not exercise the option. therefor the put would be out of the money. 24" Which of the following statements is FALSE? (4 points] A) Acall option gives the owner the right to buy the asset B) A put option gives the owner the right to sell the asset Q A nancial option contract gives the writer the right (but not the obligation) to purchase or sell an asset at a xed price at some future date. D) A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price. 25' This graph depicts the payoffs of [2 10 points): A) Acall option holder (long a call) B] A put option holder (long a put) 5 C] A call option writer (short a call) D) A put option writer (short a put) t 3. a m D- 10 20 30 -5 ~ 10 U nderlying Stock 9 Page 9 of 9 1880 Words U? English (US) UFocus - U + 100