Exhibit 22.4
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for Citigroup
$$\begin{array} { c c c }
\text { otrike Price } & \text { Put Price } & \text { Call Price } \
\hline\$ 32.50 & \$2.85 & \$1.65
\end{array}$$
-Refer to Exhibit 22.4.A covered call is an appropriate strategy if
A) An investor wishes to generate additional income.
B) An investor wished to insure against a decline in share values.
C) An investor expected share prices to be volatile.
D) An investor expected share prices to remain in a trading range.
E) An investor expected share prices to be volatile, but was inclined to be bullish.

Question

Exhibit 22.4
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for Citigroup
 $$\begin{array} { c c c } 
\text { otrike Price } & \text { Put Price } & \text { Call Price } \
\hline\$ 32.50 & \$2.85 & \$1.65
\end{array}$$
-Refer to Exhibit 22.4.A covered call is an appropriate strategy if
A) An investor wishes to generate additional income.
B) An investor wished to insure against a decline in share values.
C) An investor expected share prices to be volatile.
D) An investor expected share prices to remain in a trading range.
E) An investor expected share prices to be volatile, but was inclined to be bullish.

Quizplus · Accepted Answer

This strategy is appropriate if an investor wished to generate additional income.

Exhibit 22 otrike Price Put Price Call Price $32.50$2.85$1.65\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array} otrike Price $32.50​ Put Price $2.85​ Call Price $1.65​​

Exhibit 22 $\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array}$