Warnes Motors' Stock Is Trading at $20 a Share

question 6

Multiple Choice

Warnes Motors' stock is trading at $20 a share.Three-month call options with an exercise price of $20 have a price of $1.50.Which of the following will occur if the stock price increases 10% to $22 a share?

• A) The price of the call option will increase by $2.
• B) The price of the call option will increase by less than $2,but the percentage increase in price will be more than 10%.
• C) The price of the call option will increase by less than $2,and the percentage increase in price will be less than 10%.
• D) The price of the call option will increase by more than $2.
• E) The price of the call option will increase by more than $2,but the percentage increase in price will be less than 10%.

Comprehend the instructor’s role in guiding students’ learning processes.

Grasp the importance of paying attention to the syllabus for understanding instructor expectations.

Be aware of adjunct faculty's requirements and how they may differ from full-time faculty.

Develop skills in setting, analyzing, and refining academic and personal goals using the SMART guideline.

---

Definitions:

Anoxia

A condition characterized by an absence of oxygen supply to an organ or tissue, which can result in damage or dysfunction.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.

Oxygen Deprivation

A state where there is an insufficient supply of oxygen to the body that can lead to critical health issues or damage to organs.

Developing Fetus

A term referring to a human embryo after the initial stages of development, specifically from the ninth week after fertilization until birth.