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Question
Alicia owns 500 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 $1.05 bid, $1.15 ask. The 47.50 put is quoted at $0.80 bid, $0.85 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. $740
C. $670
D. $530
E. $425
Answer
This answer is hidden. It contains 25 characters.
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