In June 2007, an Investor Buys a Call Option on Amgen

question 38

Multiple Choice

In June 2007, an investor buys a call option on Amgen stock with an exercise of price of
$65 and expiring in January 2009. If the stock price in June 2003 is $60, then this option is:
I. in-the-money
II. out-of-the-money
III. a LEAPS

• A) I only
• B) II only
• C) III only
• D) II and III only

---

Definitions:

Defensive Style

The characteristic manner in which an individual habitually copes with stress, threats, and conflicts, often through specific defense mechanisms.

Unconscious Defense Mechanisms

Tactics used by the subconscious mind to alter, deny, or twist reality to guard against anxiety and undesirable tendencies.

Denial

A defense mechanism where confrontation with a reality or fact is avoided by denying the existence of the problem or reality.

Sublimation

A psychological defense mechanism where socially unacceptable impulses are transformed into socially acceptable actions or behavior.