Underlying stock price: 45.80 What option would you buy if you want to have the right to sell 100 shares of Glaxo stock on or before the 3rd Friday in October for $45 per share?

Question

Underlying stock price: 45.80  What option would you buy if you want to have the right to sell 100 shares of Glaxo stock on or before the 3rd Friday in October for $45 per share?

Quizplus · Accepted Answer

To have the right to sell 100 shares of GlaxoStock on or before the 3rd Friday in October for $45 per share, we need to buy a put option with a strike price of $45. Therefore, the correct option to buy is the Oct 45 put.

Underlying Stock Price: 45