Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) An option's value is determined by its exercise value,which is the market price of the stock less its strike price.Thus,an option can't sell for more than its exercise value.
• B) As a stock's price increases,the premium portion of an option on that stock increases because the difference between the stock price and the fixed strike price increases.
• C) If the company is consistently profitable,its call options will always be in the money.
• D) The market value of an option depends in part on the option's length of time until expiration and on the variability of the underlying stock's price.
• E) The potential loss on an option decreases as the option sells at higher and higher prices because the profit margin becomes larger.

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Definitions:

Thomas And Chess

Two psychologists known for their research in temperament, identifying three basic types of temperament in children: easy, difficult, and slow-to-warm-up.

Self-Concept

An individual's perception of themselves, shaped by personal experiences, attributes, and social interactions.

Attachment Phases

Stages through which a child develops close emotional bonds with caregivers, including pre-attachment, attachment in-the-making, clear-cut attachment, and formation of reciprocal relationships.

Maltreatment

Inappropriate or harmful treatment towards an individual, often referring to physical, sexual, emotional abuse, or neglect, particularly in contexts of caregiving.