Options on XYZ Corporation's Common Stock Trade in the Market

question 16

Multiple Choice

options on XYZ Corporation's common stock trade in the market.Which of the following statements is most correct, holding other things constant?

• A)The price of these call options is likely to rise if XYZ's stock price rises.
• B)The higher the strike price on XYZ's options, the higher the option's price will be.
• C)Assuming the same strike price, an XYZ call option that expires in one month will sell at a higher price than one that expires in three months.
• D)If XYZ's stock price stabilizes (becomes less volatile), then the price of its options will increase.
• E)If XYZ pays a dividend, then its option holders will not receive a cash payment, but the strike price of the option will be reduced by the amount of the dividend.

Understand the Big Five personality traits and their relevance to individual behavior.

Identify the determinants of personality and their impact on behavior.

Recognize the role of personality in job performance and organizational settings.

Comprehend the concept of locus of control and its effects on workplace behavior and attitudes.

---

Definitions:

Profit-Maximizing Monopolist

A single seller in a market who determines the optimal level of output and price to maximize profits, facing no competition.

Same Price

A situation where different products, services, or commodities are sold for an identical amount of money.

Market 1

A generalized term referring to a space or system in which buyers and sellers engage in the exchange of goods, services, or information.

Market 2

A term that might refer to a secondary or alternative market for goods, services, or securities distinct from the primary or original market.