RTF stock is currently priced at $19.13 a share.The only options on this stock are the March $25 call option,which is priced at $.58,and the March $25 put which is priced at $5.99.Flo would like the option to purchase 300 shares of RTF should the price suddenly rise as she expects.Her main concern is that the price will double after hours and she will miss out on some potential profits.She also realizes the stock is highly risky and she could lose her entire investment,which she prefers not to do.What should she do to help offset her concerns?
A) Sell 300 put option contracts and receive $1,797
B) Sell 3 call option contracts and receive $174
C) Buy 300 call option contracts at a cost of $1.74
D) Buy 3 put option contracts at a cost of $17.97
E) Buy 3 call option contracts at a cost of $174
Correct Answer:
Verified
Q51: The 6-month $35 options on Leeway Motors
Q52: Robotic stock is selling for $81.68 a
Q53: The $22.50 put option on ALF stock
Q54: The market price of Wild Ride stock
Q55: You wrote six call option contracts on
Q57: Pure Aqua stock is selling for $36.60
Q58: British Imports has a stock price of
Q59: The 1-year $20 options on Water Kingdom
Q60: Rita owns 12 put option contracts on
Q61: You own a call option on NICo
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents