A Stock Currently Sells for $150 Per Share

question 41

Multiple Choice

A stock currently sells for $150 per share.A call option on the stock with an exercise price $155 currently sells for $2.50.The call option is

• A) At-the-money.
• B) In-the-money.
• C) Out-of-the-money.
• D) At breakeven.
• E) None of the above.

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Definitions:

Stimulus Presentation

The act of introducing a stimulus to a subject's sensory medium (e.g., visual, auditory) to provoke a response or examine the subject's behavior in psychological experiments.

Schedule of Reinforcement

A plan or strategy in behavioral psychology for determining which responses will be reinforced to shape or modify behavior.

Partial Reinforcement

A conditioning strategy in which a reward is not administered every time the desired behavior is performed, often leading to more resistant behavior change.

Reinforcers

Stimuli, which when presented after a behavior, increase the likelihood of that behavior being repeated.