You Own a Call Option on Pester Me Stock That

question 425

Multiple Choice

You own a call option on Pester Me stock that expires in one year. The exercise price is $22.50. The current price of the stock is $26.40 and the risk-free rate of return is 4 percent. Assume that the option will finish in the money. What is the value of the call option?

• A) -$4.77
• B) -$3.90
• C) $0
• D) $3.90
• E) $4.77

Understand the ethical considerations in research, especially regarding participant consent and researcher-participant relationships.

Comprehend the influence of researcher perspective on the choice of research topic, method, and interpretation of data.

Appreciate the necessity of reliability and validity in measurement tools used in research.

Understand the legal obligations and duties involved in the employer-employee relationship, specifically relating to safe working conditions.

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Definitions:

Ratings

Evaluations or assessments of the quality, performance, or popularity of products, services, or content, often influencing consumer choices and perceptions.

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs, emphasizing flexibility for both employers and workers.

Tax-free Purchases

Transactions exempt from sales tax, often related to purchases made in duty-free shops or certain goods in specific regions or situations.

High Tech

Industries and companies that are involved in developing and producing advanced technology products and services, especially in fields like electronics, software, and biotechnology.