We all know that trading options is exciting, highly competitive, and can be very profitable. The key to long term and consistent profits in option trading is options education. The McMillan Mentoring Program, which is run by former Market Maker, white badge AMEX Floor Official, professional trader, and longtime MENSA member Stan Freifeld, can take your trading to the next level. To see where you stand, take Stan’s Options Challenge by answering his question on the first Monday of each month.
Every participant who answers this week's question correctly within 7 days will receive complimentary access to The Option Strategist Newsletter Volume 2.* Good Luck!
Stan’s Options Challenge: Question #10
For XYZ stock, the following quotes are shown:
Stock : 32.86 x 32.88 2,000 x 1,500
Oct 25 Calls: 8.00 x 8.25 25 x 20
Dec 30 Puts: 0.05 x .10 50 x 75
Based on these prices, an arbitrage trade may be available. If so, what is the maximum amount of gain that can be guaranteed at December expiration regardless of the price of the stock? Assume 0% interest, no commissions, and no dividends.
A) No arbitrage is available
B) $30
C) $50
D) $140
E) $150
Click Here to Submit Your Answer
*Answers must be received by 11:59 PM eastern time on 9/15/14. Participants may only submit 1 answer. The complimentary access to the download will begin after the conclusion of the 1 week period. Winners will receive an email containing a unique coupon code for the product.
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