Use the Table for the Question(s)below

question 42

Essay

Use the table for the question(s)below.
Consider the following information on options from the CBOE for Merck:
-You have decided to buy ten January 2009 call options on Merck with an exercise price of $45 per share.How much will this transaction cost and are these contracts in or out of the money?

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Definitions:

Peter Blau's Exchange Theory

A sociological perspective that views social interactions as transactions in which individuals seek to maximize their rewards and minimize their costs.

Legitimization

The process of making something acceptable, justified, or seen as legitimate, often in a social, legal, or moral sense.

Power Differentials

The disparities in power between individuals or groups in a social hierarchy or structure.

Social Interaction

The process by which people act and react in relation to others, forming the basis of social relationships and structures.