The Premium on a Long Term Call Option on the Market

question 5

Multiple Choice

The premium on a long term call option on the market index with an exercise price of 950 is $12.00 when originally purchased.After 6 months the position is closed,and the index spot price is 965.If interest rates are 0.5% per month,what is the Call Payoff?

• A) $2.64
• B) $12.00
• C) $12.36
• D) $15.00

Explain the psychological theories related to intergroup relations such as realistic group conflict theory, social identity theory, and stereotype threat theory.

Distinguish between prejudice, discrimination, and stereotypes.

Identify the factors that contribute to prejudice and discrimination, including economic competition, social dominance orientation, and authoritarian personality traits.

Evaluate the role of ingroup bias and outgroup hostility in sustaining social hierarchies.

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Definitions:

Machine Operator's Wages

Compensation paid to employees responsible for operating machinery, considered a direct labor cost in manufacturing.

Inventory Costing

The method of assigning costs to inventory and goods sold, which affects the gross profit and cost of goods sold reported.

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recent purchases in inventory.

Direct Materials

Raw materials that can be directly traced to the production of goods.