ABC Stock Is Currently Priced at $31

question 350

Multiple Choice

ABC stock is currently priced at $31.42 a share. The three-month calls have a strike price of $30.00 and a market price of $2. If Mary purchases the call today and then exercises the option next week, how much will she have spent for each share of stock she purchased?

• A) $30.00
• B) $30.02
• C) $31.42
• D) $31.44
• E) $32.00

---

Definitions:

Doubling Time

Number of years it takes for a population to double in size.

Growth Rate

The rate at which a living organism or part of an organism increases in size.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain or ecological functions.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.