Deeble Construction Co

question 3

Multiple Choice

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

• A)The options with the $25 strike price will sell for $5.
• B)The options with the $25 strike price will sell for less than the options with the $35 strike price.
• C)The options with the $25 strike price have an exercise value greater than $5.
• D)The options with the $35 strike 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 strike price would also increase by $5.

Understand and apply percentage calculations in various financial and investment contexts.

Calculate the implications of financial decisions involving interest rates, commissions, and partnerships.

Apply mathematical concepts to solve problems related to budgeting and sales projections.

Analyze investment distribution to optimize interest gains.

---

Definitions:

Withholding

The act of deliberately not providing information, resources, or emotions, which can affect communication and relationships.

Personal Information

Data or details about an individual that identify them or reveal their private thoughts, experiences, or characteristics.

Nonconversation

A way to describe the amount of actual conversation in cliché conversation.

Gut-Level Communication

An informal form of communication that is based on instinctive feelings rather than rational thought.