A 6-Month Call Option on Romer Technologies' Stock Has a Strike

question 4

Multiple Choice

A 6-month call option on Romer Technologies' stock has a strike price of $45 and sells in the market for $8.25.Romer's current stock price is $48.What is the exercise value of the option?

• A)$3.00
• B)$3.75
• C)$4.69
• D)$5.86
• E)$7.32

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Definitions:

Employee Innovation

The process by which employees contribute new ideas, processes, or improvements to their organization.

Organic Structures

Organizational structures characterized by flatness, low specialization, low formalization, and decentralization.

Mechanistic Structures

Organizational structures characterized by tallness, specialization, centralization, and formalization.

Process Innovation

The implementation of new or significantly improved production or delivery methods, enhancing efficiency and productivity.