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If a Share Price Does Not Rise or Fall by the Amount

question 66

True/False

If a share price does not rise or fall by the amount of the option premium, the option will not be exercised.


Definitions:

Interest Rate

The interest rate is the percentage charged on the total amount lent or paid on invested funds, typically expressed on an annual basis.

Loanable Funds

Money available for borrowing, which is determined by the savings in the economy plus the money provided by banks and other financial institutions.

Interest Rate

The requisition, as a percentage of the principal, placed by lenders on borrowers for asset use.

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth.

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