Deeble Construction Co

question 5

Multiple Choice

Deeble Construction Co.'s stock is trading at $30 a share. There are also call options on the company's stock, some with an exercise price of $25 and some with an exercise price of $35. All options expire in three months. Which of the following best describes the value of these options?

• A) The options with the $25 exercise price will sell for $5.
• B) The options with the $25 exercise price will sell for less than the options with the $35 exercise price.
• C) The options with the $25 exercise price have an exercise value greater than $5.
• D) The options with the $35 exercise price have an exercise value greater than $0.
• E) If Deeble's stock price rose by $5, the exercise value of the options with the $25 exercise price would also increase by $5.

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Definitions:

Culturally Standardized

Practices, norms, or products that have been widely accepted and integrated into a culture.

Disposition

Final placement or disposal of a dead person.

Entombment

Opening and closing of a crypt, including placing and sealing of a casket within.

Earth Burial

A traditional method of disposing of a body post-mortem, where the deceased is interred in the ground, typically within a cemetery.