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Apple Inc. put options with a strike price of $260 are trading at a premium of $12. Apple shares are trading for $245 per share. Assume one share per option contract and assume that the options are American. To take advantage of this option price you should: I. Buy a share of Apple II. Buy a put option III. Sell a put option IV. Exercise the put option V. Sell a share of Apple O 1) II then II O 2) I then III then IV O 3) I then II then IV O 4) II then IV then V

Apple Inc. put options with a strike price of $260 are trading at a premium of $12. Apple shares are trading for $245 per share. Assume one share per option contract and assume that the options are American. To take advantage of this option price you should: I. Buy a share of Apple II. Buy a put option III. Sell a put option IV. Exercise the put option V. Sell a share of Apple O 1) II then II O 2) I then III then IV O 3) I then II then IV O 4) II then IV then V

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Apple Inc. put options with a strike price of $260 are trading at a premium of $12. Apple shares are trading for $245 per share. Assume one share per option contract and assume that the options are American. To take advantage of this option price you should: I. Buy a share of Apple II. Buy a put option III. Sell a put option IV. Exercise the put option V. Sell a share of Apple O 1) |II then III O 2) I then III then IV ) 3) i then II then IVv O 4) II then IV then V
Transcribed Image Text:Apple Inc. put options with a strike price of $260 are trading at a premium of $12. Apple shares are trading for $245 per share. Assume one share per option contract and assume that the options are American. To take advantage of this option price you should: I. Buy a share of Apple II. Buy a put option III. Sell a put option IV. Exercise the put option V. Sell a share of Apple O 1) |II then III O 2) I then III then IV ) 3) i then II then IVv O 4) II then IV then V
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