Suppose the Price of a Share of IBM Stock Is

question 32

Multiple Choice

Suppose the price of a share of IBM stock is $200.An April call option on IBM stock has a premium of $5 and an exercise price of $200.Ignoring commissions, the holder of the call option will earn a profit if the price of the share

• A)increases to $204.
• B)decreases to $190.
• C)increases to $206.
• D)decreases to $196.

---

Definitions:

Fate of the Animals

A painting by Franz Marc depicting animals in a forest under a chaotic, apocalyptic sky, expressing themes of war and destiny.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's great powers and marking significant political, military, and social changes.

André Derain

A French artist and co-founder of Fauvism with Henri Matisse, known for his bold colors and innovative brushwork.

Brush Strokes

The application of paint onto a surface with a brush, creating distinct textures and dynamics in painting.