Alicia owns 600 shares of Danube stock. She thinks the market price will continue to rise but would like to ensure that she can get at least $47.50 a share should she decide to sell her shares. The 47.50 call option is quoted at $1.15 bid, $1.20 ask. The 47.50 put is quoted at $0.90 bid, $0.95 ask. How much will it cost her to ensure that she can sell all of her shares for at least $47.50 each?
A) $805
B) $840
C) $570
D) $630
E) $690

Question

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The Answer of Alicia owns 600 shares of Danube stock. She thinks the market price will continue to rise but would like to ensure that she can get at least $47.50 a share should she decide to sell her shares. The 47.50 call option is quoted at $1.15 bid, $1.20 ask. The 47.50 put is quoted at $0.90 bid, $0.95 ask. How much will it cost her to ensure that she can sell all of her shares for at least $47.50 each?
A) $805
B) $840
C) $570
D) $630
E) $690

Alicia Owns 600 Shares of Danube Stock