C04V Introduction to Psychology Research Essay Evaluation - Essay Paper

C04V: Essay

Your project must be submitted as a Word document (.docx, .doc). Your project will be individually graded by your instructor and therefore may take up to five to seven days to grade.

Be sure that each of your files contains the following information:

·         Your name

·         Your student ID number

·         The exam number

·         Your email address

Objective

To successfully complete this course, you must write a research essay based on information found in your textbook, Psychology and Your Life, by Robert S. Feldman, and three outside sources. You'll choose one of the three topics below and write an essay of six complete paragraphs for or against the question being asked. After presenting both sides of the debate, you'll make three claims to support your thesis and convince the reader why your opinion is correct.

Topics

1.       Media Violence: Does media violence cause violent behavior?  (This topic is chosen)

2.       Eyewitness Testimony: Is eyewitness testimony reliable in the court of law?

3.       The Opioid Epidemic: Are doctors who overprescribe narcotic pain medication causing the opioid epidemic?

Note: You're to select only one topic for your paper.

Process

Your essay must include the following:

1.       A title page

2.       Introduction paragraph and thesis statement

3.       Topic background paragraph that presents both sides of the debate

4.       Body consisting of three claim paragraphs and supporting evidence

5.       Conclusion paragraph

6.       APA style reference page

The Title Page

The first page of your essay will be the title page. Provide the following information:

·         The title of your research essay

·         Your name and student ID

·         "C04V: Introduction to Psychology"

·         Exam number

·         "College"

·         Current date

Formatting

Format your essay following American Psychological Association (APA) style using 12 pt. Times New Roman font. Set your paragraph line spacing to 2.0, double-spacing. Use 1 inch margins. Include a header with a shortened title in ALL CAPS on the left and the page number on the right. In-text citations and the reference page must be in APA style. On this page list websites, journals, and all other references used in preparing the submission. Also include a cover page and in-text citations. For assistance with this project and APA in-text citations and references, please see the Biology page in the Virtual Library.

Remember that grammar counts! Be sure to reread, revise and proofread your essay for polished English grammar, spelling, capitalization, spacing, and mechanics.

Rubric

Chosen Topic: Media Violence Does Media Violence Cause Violent Behavior?

   

Exam 500895 - Case 1 Purchase Point Media (PPMC)

Case 1: Purchase Point

Media Corporation (PPMC)

INTRODUCTION

This case is based on actual financial projections developed

and provided by a publicly traded firm, Purchase Point Media

Corporation (PPMC). Carefully examine the PPMC projections,

which are presented in a sequence and format suitable for

break-even calculation and analysis. After you calculate the

break-even point, use additional, publicly available information

to come to a decision with respect to market potential.

The increase in the price per share of PPMC stock suggests

that, over time, the market may have reacted to their results

and analyses, using a comparable methodology.

OBJECTIVES

When you complete this case, you'll be able to

• Identify discernable errors, irregularities, and improprieties

in style and format within publicly reported data

• Meet financial statement presentation requirements for a

specific "real world" example

• Determine whether financial information provided follows

generally accepted accounting principles (GAAP) or is

presented in "good form"

• Distinguish between the substance and form of

financial statements

• Estimate variable and fixed costs for a publicly

traded company

• Assess publicly disseminated information from publicly

traded companies to determine the feasibility of market

potential and market penetration

• Exercise enhanced critical-thinking skills

Senior Capstone: Business 9

CASE BACKGROUND

Purchase Point Media Corporation (Pink Sheets: PPMC) is

what some refer to as a thinly traded "corporate shell." The

firm held patents in the United States, Canada, United

Kingdom, and Germany for a shopping-cart display device,

but was a nonreporting and nonoperating entity.

On March 18, 2002, PPMC reported its intention to sell these

patents and related trademarks. The initial estimates suggested

a stock price of nearly $2.50 per share, before related

per-share deductions for sale-related broker's commissions

and legal fees. At the time of the news release, the firm's

stock was trading at $0.04 per share. In less than 60 days

the stock was trading at more than $0.60 per share (Cataldo

2003, 55–60), for a 1,400 percent increase in price per share.

(Note that investors and speculators alike would view this as

a very risky investment, and the price per share for PPMC

stock would be expected to fall short of or sell at a significant

discount to the "anticipated" selling price for the firm's intangible

assets. See Arbel and Strebel 1982 and 1983; Arbel,

Carvell and Strebel 1983; and Arbel 1985 for guidance on

thinly traded or "neglected" firms.)

While this initial news release attracted speculators, causing

the stock price to rise, after months without any additional

news releases, the stock price drifted down again. On August

20, 2003, PPMC again announced its intention to sell the

firm's intangible assets (Business Wire 2003).

In the second announcement, PPMC management referred

interested investors to their corporate Web site. Among the

data provided, PPMC included a financial projection and

other items they felt might be of interest to potential purchasers

of the firm's intangible assets (see Exhibit 1,

Purchase Point Media Corp. statement, which follows).

To begin this case, review and comment on the "form" of

the public disclosure circulated by PPMC. Then use the

"substance" of this information to develop per-unit, salesbased

contribution margins and break-even points for the

first year of operations. Last, gather other publicly available

information to determine the market feasibility of achieving

its break-even point.

10 Senior Capstone: Business

 

 

 

 

 

20 Senior Capstone: Business

SUPPLEMENTAL INFORMATION

Brand Name versus Generic Stocks

Graphs

Supplemental information is provided in Figures 1 and 2.

Figure 1 illustrates the price per share for PPMC common

stock for the time period August 20, 2003 through September

27, 2004. The latter date represents the specific event when

PPMC filed their 10QSB. Figure 2 compares the PPMC price

per share with comparable index measures, such as the Dow

Jones Industrial Average, Standard and Poor's 500, NASDAQ,

and Russell 2000 indices, for the same period of time.

Brand Name Stocks Generic Stocks

Less information risk More information risk

Higher quality of information Lower quality of information

Large sample of consensus

estimates

Small or no sample of consensus

estimates

Monitoring service or fee No monitoring service or fee

Lower return Higher return

Higher price (premium) Lower price (discount)

Lower uncertainty Higher uncertainty

MoGraphs

Supplemental information is provided in Figures 1 and 2.

Figure 1 illustrates the price per share for PPMC common

stock for the time period August 20, 2003 through September

27, 2004. The latter date represents the specific event when

PPMC filed their 10QSB. Figure 2 compares the PPMC price

per share with comparable index measures, such as the Dow

Jones Industrial Average, Standard and Poor's 500, NASDAQ,

and Russell 2000 indices, for the same period of time.

 

References

Arbel, A. 1985. Generic Stocks: An old product in a new

package. The Journal of Portfolio Management 68: 4–13.

Arbel, A., Carvell, S., and Strebel, P. 1983. Giraffes,

Institutions and Neglected Firms. Financial Analysts

Journal 39: 57–63.

Arbel, A., and Strebel, P. 1982. The Neglected and Small Firm

Effects. The Financial Review: 201–18.

Arbel, A., and Strebel, P. 1983. Pay attention to neglected

firms! The Journal of Portfolio Management 9: 37–42.

Business Wire. 2003. Purchase Point Media Corp.: Corporate

Update (August 20).

Cataldo, A. Information Asymmetry: A Unifying Concept for

Financial and Managerial Accounting Theories (including

illustrative case studies). Studies in Managerial and

Financial Accounting 13, 2003. Oxford, England:

Elsevier Science (JAI). Series Editor: Marc Epstein.

 

 

PROJECT REQUIREMENTS

The project requires two steps to be presented.

Step 1 – Identify Form and Substance Errors.

Step 2 – Compute the Purchase Point Media (PPMC) break-even points in terms of carts and stores.

In one Word document, provide individual sections for each Step. This Word document along with the Excel file (described below for Step 2) will be uploaded when you click on the Take Exam button on your Student Portal to submit your project (described under the "Submitting Your Assignment" later in the instructions).This Senior Capstone project highlights your knowledge and the skills you have developed over the course of your education. There is nothing "new" to be learned here

 

The knowledge and skills required for this project include English Composition, Financial Accounting, Managerial Accounting, Information Literacy and the abilities to think critically, do research and to present your work in a professional manner.

If you are unsure or don't understand something about the project, then go back to your previous subjects to review. For example, if you don't remember how to make a proper citation, then revisit your English Composition to see how to make a correct citation. Or, if you don't remember how to calculate a break-even point, go back to Managerial Accounting and review the subject matter pertaining to that concept.

 

Remember, there is nothing "new" here. Everything about this project you should already know how to do.

 

Substance versus Form and Critical Thinking Step 1

In the infamous Enron bankruptcy case, the form of the financial statements prepared by the Enron Corporation and WorldCom was very professional; however, the substance was lacking, leading to audit and market failures and the eventual bankruptcy of both of these big-cap, or large-capitalization firms. PPMC represents a reverse case, in which the form of the data contained in the PPMC news release and corporate Web site was very poor.

To begin, read the PPMC report, focusing on problems with the form of the report. ("Form" means spelling, punctuation, and capitalization are correct and that the text is grammatically correct. Also, form means that the format of the text as far as font, bold, underlining, indents, and so on are correct.) Prepare a typed, clearly communicated summary of all errors or weaknesses you find in the form of this report. This should be a numbered list. There are well over 30 form errors in the document. (The ways to go about doing this for this step is to think of yourself as an English Composition instructor and a student has turned in a required paper that was written.) Although the PPMC report isn't well-written, don't attempt rewrite the report.  Only present a numbered list of the errors found

To report the numbered list of form errors for this step, each error should have three components:

1.The location of the error.

2.What the error is.

3.How the text should have been written correctly.

Here is an example of how you'll present the form errors

 

Summary of Errors in the Form of the PPMC Report

1.Location:

The first page of Exhibit 1, the last sentence of the first paragraph states "You should independently investigate and fully understand all risk before making investment decisions."

Error:

The word risk is singular. It should be plural.

Correction:

It should have been written "You should independently investigate and fully understand all risks before making investment decisions."

Next, reread the PPMC report, focusing on problems with the substance of the report. ("Substance" means the figures and data that are being reported and making sure the math is correct.) Identify the obvious errors or problems first by focusing on the addition or math errors. Prepare a typed, clearly communicated summary of all errors you find in the substance of this report. These should be presented in a numbered list.

 

To report the numbered list of substance errors for this step, each error should have three components the same as the presentation of the form errors:

1.The location of the error.

2.What the error is.

3.How the text should have been written correctly

 

The heading for the substance errors should be "Summary of Errors in the Substance of the PPMC Report"

Do not take this step lightly. The data and figures found in the report are used to calculate the beak-even analysis for Step 2. As presented, the data is incorrect and therefore, the break-even analysis would be incorrect. Therefore, it is important that you find "all" of the substance errors and correct them as these corrected figures will be what you use to make the break-even calculations for Step 2.

 

Step 2

The PPMC Notes in the document appear to be organized by cost behavior. This is similar to the approach you used in your Managerial Accounting course. You should follow this approach or framework as you compute the PPMC break-even point in terms of carts and stores. Begin with revenues, fol-low with variable costs (VCs), develop the contribution margin (CM; in aggregate), followed by fixed costs (FCs), and, finally, compute PPMC's net operating income (NOI) and break-even point in terms of both carts and stores.

 

On your Student Portal, under the Supplements section of the Senior Capstone subject is a downloadable Excel file titled "Exam 500895- PPMC Excel Spreadsheet"

 

Step 2 requires that you calculate the break-even points for both carts and stores. Download this file and use it to calculate the breakeven points.

 

Reference the Excel spreadsheet for Step 2 in the Word document and include the spreadsheet as a separate file when submitting the project. The spreadsheet for the calculations is too large to include in a table in a Word document or be able to read if an Excel spreadsheet is inserted. Therefore, there should be two files submitted for the project – this Word document and the Excel spreadsheet with your work for Step 2.

 

The majority of the work has been done for you when using the spreadsheet. The setup to be able to calculate the CM, NOI and the break-even points are part of the spreadsheet. What you need to do to interpret the Notes from the PPMC document, input the data into the spreadsheet (be sure to use your "corrected substance" figures/data from Step 1), and do the calculations required to obtain the break-even point for the carts and the break-even point for the stores. (Hint: Some cells in the spreadsheet have comments inserted. Pay attention to these comments. For example, there is a comment in a cell that has the formula to be used to calculate the break-even point.)

   

Exam 500896 - Case 2 Motomart

Case 2: Motomart

INTRODUCTION

The Motomart case is designed to supplement your managerial/ cost accounting textbook coverage of cost behavior and variable costing using real-world cost data and an auto-industryaccepted cost driver. Unlike textbook problems, this data is real. It won't necessarily produce a clear solution when you attempt to analyze cost behavior and apply scatter-plot, high-low, and regression methods to separate mixed costs into their fixed and variable components. This case also illustrates that financial accounting decisions and methods can have an influence on cost accounting and managerial applications and decisions.

 

OBJECTIVES

When you complete this case, you'll be able to • Explain the importance of accrual accounting and proper application of the matching principle for the computation of contribution margins and break-even points • Apply knowledge of generally accepted accounting principles (GAAP) to a specific real-world example • Integrate statistical analyses and scatter plots, line graphs, and regression to determine the reliability of financial information prepared for external use • Use analytical review procedures to examine a firm's financial statements • Apply critical-thinking skills to real-world business circumstances

 

CASE BACKGROUND

This case is based on real financial data provided by a retail automobile dealership (Motomart) seeking to relocate closer to an existing retail dealership. You'll examine the mixed cost data from Motomart and apply both high-low and regression to attempt to separate mixed costs into their fixed and variable components for break-even and contribution margin computations. You'll find that the data is flawed because Motomart was a single observation in a larger database. Don't attempt to correct the data (e.g., remove outliers or influential outliers). You'll be producing a scatterplot and apply high-low and regression methods to the extent practicable and writing a summary report of the findings. Motomart operates a retail automobile dealership. The manufacturer of Motomart products, like all automobile manufacturers, produces forecasts. It has long been an industry practice to use variable costing-based/break-even analyses as the foundation for these forecasts, to examine their cost behavior as it relates to the new retail vehicles sold (NRVS) cost driver. In preparing this financial information, a common financial statement format and accounting procedures manual is provided to each retail auto dealership. The dealership is required to produce monthly financial statements using the guidelines provided by this common accounting procedures manual, and then furnish these financial statements to the manufacturer. General Motors, Ford, Nissan, and all other automobile manufacturers employ similar procedures manuals. The use of a common format facilitates the development of composite financial statements that can be used to estimate costs and produce financial forecasts for future or proposed retail dealership sites (Cataldo and Kruck 1998). Zimmerman (2003) suggests that as many as 77 percent of manufacturers divide costs into variable and fixed components, and that managers arrive at these estimates by classifying individual accounts as being primarily fixed or primarily variable (67). For this case, you'll examine mixed costs as defined by the manufacturer. Using the scatterplot, high-low, and regression methods, separate these mixed costs into their fixed and Senior Capstone: Business 29 variable components. The data is problematic, and a clear solution won't exist. Don't attempt to correct the data by removing outliers, but make observations based on any patterns you observe. The case will expose you to actual data and require you to summarize your findings, including any conclusions you're able to reach and why the financial data makes it impossible to separate the mixed costs into their fixed and variable components.

 Income and Expense Data The following tables give you information such as income statements, semi-fixed expenses, and salaries for Motomart. Look for unusual entries or discrepancies in their records and, where you can, note the cause of the problems. Table 3 summarizes financial and cost driver information produced by Motomart, where new retail vehicles sold (NRVS) is the cost driver. The account classification method has resulted in three cost behavior classifications: variable, semi-fixed, and fixed costs. Semi-fixed is the automobile industry-specific term used for mixed costs. We'll assume that Motomart's classifications of variable costs (VCs) and fixed costs (FCs) are correct, and focus our analysis on Motomart's semi-fixed or mixed costs.

REQUIREMENTS

The project requires five steps to be presented.

Step 1 – Provide comments on a 5 year Income Statement.

Step 2 – Discuss patterns in expense items.

Step 3 – Identify High/Low activity levels.

Step 4 – Compute cost equations.

Step 5 – Summarize your findings.

In one Word document, provide individual sections for each Step. This Word document along with the Excel file (described below) will be uploaded

  

 

Pennfoster Graded Project - Securities and Investments

SECURITIES AND INVESTMENTS       Project number (081612)

OBJECTIVE

Demonstrate the ability to perform investments calculations and analysis related to the concepts covered in this course.

PURPOSE

The purpose of this graded project is to give you the opportunity to use the skills you've learned throughout this course in a series of real-world applications. The three parts of this project require you to analyze portfolios containing a number of securities using a variety of analysis tools. The skills you'll demonstrate in this graded project are essential to becoming a successful financial manager.

Record your answers in a Word document with the question numbers clearly labeled.

Show your calculations or calculator inputs when indicated for full credit. Perform all work using equations and a calculator. Do not submit or use an Excel spreadsheet to calculate your answers.

Part 1: Sector Performance

Investment managers strive to outperform both the sector they focus on and broad market indexes such as the S&P 500. The performance of a portfolio is determined by both the weightings given to different types of investments as well as the actual performance of these investments. In addition, the level of risk an investor is willing to take on will impact the design of a portfolio.

To answer the questions in Part 1, you'll use the information provided about the portfolio in the table below. The portfolio is broken out by sectors and shows the investor's portfolio's weighting and performance and the S&P 500's weighting and performance in each sector. The final column shows the individual investments' overall contributions to the portfolio. Note that an investment can underperform the S&P and still have a positive contribution to the portfolio based on the difference in weighting.

1.      Fill in the missing values in the table above for a quarterly comparison of sectors with the S&P 500 Index. Remember when performing calculations that the num­bers shown are percentage values. Record your answer

 

2. Did the performance turned in by the investment manager underperform or outperform the S&P 500? By how much? Show your work.

3. Which sector turned in the greatest positive contribution to the portfolio's performance?

Explain why this investment made the greatest positive contribution based on the differences in weighting and the sector over- or under- performance.

4. Which sector made the greatest negative contribution to the portfolio's performance?

Explain why this investment made the greatest negative contribution based on the differences in weighting and the sector over- or under- performance.

Part 2: Portfolio Analysis

Use the three portfolios shown below to answer questions 5–8 in Part 2.

Portfolio 1

5. Based on beta, which portfolio has the highest level of systematic risk? Show your work.

6. If the risk-free rate is 5.5 percent, which of these portfolios has the highest reward-to-risk ratio? Show your work.

7. Suppose that the risk-free rate is 5.5 percent, the return over a three-year period for each portfolio matches its expected return, and the portfolios have 3-year annual return standard deviations as follows:

Portfolio 1          22%

Portfolio 2           26%

Portfolio 3           18%

If you were restricted to selecting one of the three portfolios to invest all your money in, which should you choose based on that portfolio having the best ratio of excess return per unit of total risk as measured by its Sharpe ratio?

8. Suppose that the actual returns for Portfolios 1, 2, and 3 were as follows:

Portfolio 1           11.3

Portfolio 2            12.5

Portfolio 3             9.4

Also assume that the risk-free rate was 5.5 percent and the average return on the market portfolio was 8 percent.

a. Which of the three portfolios has the highest Jensen's alpha? Show your work.

b. Which has the highest Treynor ratio? Show your work.

Part 3: Selecting a Portfolio

Use the two portfolios shown in the tables below to answer the questions in Part 3.

9. In your role as a financial advisor, you're advising a client, Sally, a 30-year old computer programmer who makes an above-average salary. She's investing money in her 401(k) that she doesn't plan to use until retirement. In your opinion, which of the two portfolios above would be most appropriate for these funds? In your answer, explain why you believe the portfolio you've chosen is appropriate and explain why the portfolio you didn't choose is not appropriate.

10. In your role as a financial advisor, you're advising a client, Bob, who has just retired and rolled over his 401(k) into a self-directed IRA account. Bob intends to use these funds to provide income to live on in his retirement. In your opinion, which of the two portfolios above would be most appropriate for these funds? In your answer, explain why you believe the portfolio you've chosen is appropriate and explain why the portfolio you didn't choose is not appropriate.

 

Exam 081061RR Futures and Options

exam: 081061RR - Futures and Options

1. Which of the following best describes a speculator?

A. An investor who accepts the risk of loss for the chance to earn a profit

B. An investor who purchases government bonds

C. An investor who purchases Treasury bills

D. An investor who invests only in risk-free securities

 

2. A 3-month put has a strike price of $50 and an option premium of $3.10. The underlying stock is selling for $47.80 per share. What is the time value of the put?

A. $0

B. $2.20

C. $1.10

D. $.90

 

3. Which one of the following is the primary purpose of a protective put?

A. guarantee a higher return than is possible from just owning the underlying security

B. increase in potential rate of return due to increase in risk

C. profit from an expected future increase in the underlying stock's value

D. offset the risk associated with a decrease in the value of the underlying asset

 

4. Your broker requires an initial margin of $7,050 per futures contract on wheat and a maintenance margin of $5,000 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold one wheat futures contract yesterday at the closing settlement price quote of 723. Today, the settlement quote is 854. Will you receive a margin call and if so, for what amount? All margin calls restore the margin level to its initial level.

A. Yes; $550

B. No

C. Yes; $4,500

D. Yes; $6,550

 

5. If spot-futures parity exists for an index future then the future price must equal the

A. present value of the spot price at the risk-free rate.

B. spot price.

C. future value of the spot price at the market rate.

D. future value of the spot price at the risk-free rate.

 

6. You wrote a $40 call option on a stock that has a market price of $43. Which one of the following statements must be correct if the option expires three months from now?

A. Your option payoff will increase if the market price of the stock increases.

B. Your option currently has zero intrinsic value.

C. If the market price remains stable, you will make the decision to exercise this option prior to expiration.

D. Your option currently has a negative payoff.

 

7. In 2007, the Chicago Mercantile Exchange merged with which one of the following exchanges?

A. Intercontinental Exchange

B. New York Futures Exchange

C. Chicago Board of Trade

D. New York Board of Trade

 

8. What's another name for the spot market?

A. Forward market

B. Options market

C. Cash market

D. Contango

 

9. Which one of the following statements related to futures contracts is correct?

A. Futures contracts can be cancelled by either the buyer or the seller with 10 days notice to the other party.

B. The buyer of the contract has the right to either accept delivery or cancel the contract.

C. Both the buyer and the seller of the contract are obligated to fulfill their duties as outlined in the futures contract.

D. The buyer of the contract has a short position.

 

10. The Country Farm and the Cookie Maker met today and agreed to exchange wheat six months from now at a price which they negotiated today. This agreement was made between the two firms and did not pass through an organized exchange. Which one of the following best describes this transaction?

A. Cash market

B. Futures contract

C. CME transaction

D. Forward contract

 

11. A combination is an option trading strategy that uses

A. both writing and buying call options.

B. two or more put options.

C. two or more call options.

D. both put and call options.

 

12. Suppose you manage an $858 million bond portfolio with a duration of 7.32 years. You want to hedge the portfolio with Treasury note futures that have a duration of 7.68 years and a futures price of 114. U.S. Treasury note futures contracts are based on a par value of $100,000 and quoted a percentage of par. How many contracts will you need to sell to complete this hedge?

A. 7,532 contracts

B. 9,391 contracts

C. 8,236 contracts

D. 7,174 contracts

 

13. Which of the following is the market in which financial instruments or commodities are traded for immediate delivery?

A. futures market

B. arbitrage market

C. current basis market

D. cash market

 

14. Which of the following statements defines a European-style option?

A. An option that can only be exercised at expiration

B. An option that can be exercised at any time

C. An option that's in-the-money

D. An option that's out-of-the-money

 

15. What's the difference between the cash and futures price of a commodity?

A. Margin

B. Forward

C. Basis

D. Spot

 

16. Suppose you purchased 10 call options on a stock with a strike price of $55.00. On the expiration date, the stock was priced at $54.58 a share. What is the total payoff on your purchase of the option contracts?

A. $0

B. $530

C. –$5,500

D. $42

 

17. Silver is currently trading for $18.32 an ounce, while the six- month futures price is $18.54. If you believe that silver will actually sell for $18.89 in six months, which of the following positions in silver should you take today?

A. Take a short position in the futures market

B. Take a long position in the future market

C. Sell in the future market

D. Take a short position in the spot market

 

18. The T-Shirt Factory purchased 12 futures contracts on cotton at a quoted price of 55.50 as a hedge against its inventory needs. At the time it actually needed the cotton, the spot price was 56.10. Cotton futures are based on 50,000 pounds and quoted in cents per pound. How much did the Shirt Factory save by hedging cotton?

A. $3,600

B. $560

C. $2,400

D. $1,280

 

19. You own a portfolio which is valued at $10 million and has a beta of 1.5. You would like to create a riskless portfolio by hedging using S&P 500 futures contracts. The contract size is $250 times the index level. How many futures contracts do you need to acquire if the current S&P 500 index is 1500?

A. short 40 contracts

B. long 30 contracts

C. short 50 contracts

D. long 25 contracts

 

20. Suppose you own 300 shares of a stock which is currently worth $18 a share. You just paid an option premium of $.65 to buy one put contract on this stock with a strike price of $15. What's the maximum loss per share you are avoiding by purchasing the option contract?

A. $15.65

B. $15

C. $13

D. $18