Suppose the Price of a Share of Google Stock Is

question 10

Multiple Choice

Suppose the price of a share of Google stock is $500. An April call option on Google stock has a premium of $5 and an exercise price of $500. Ignoring commissions, the holder of the call option will earn a profit if the price of the share

• A) increases to $504.
• B) decreases to $490.
• C) increases to $506.
• D) decreases to $496.
• E) None of the options are correct.

---

Definitions:

Graves' Disease

An autoimmune disorder that leads to overactivity of the thyroid gland (hyperthyroidism), causing symptoms such as rapid heart rate, weight loss, and eye bulging.

Senses

The faculties by which the body perceives an external stimulus, including sight, smell, hearing, touch, and taste.

Diabetes

A chronic medical condition where the body either cannot produce enough insulin or cannot effectively use the insulin it produces, leading to high blood sugar levels.