The Market Is in Equilibrium, Then an Option Must Sell

question 2

True/False

the market is in equilibrium, then an option must sell at a price that is exactly equal to the difference between the stock's current price and the option's strike price.

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Definitions:

Organizational Learning

The process through which a company or institution acquires, improves, and transfers knowledge, thereby enhancing performance over time.

Supply Assurance

An approach to ensure continuous and reliable provision of goods, often by managing risks in the supply chain.

Stringent Quality

The application of highly rigorous and tight quality control standards and measures to ensure products or services meet exact specifications and customer expectations.

Small Quantity

Refers to a lower volume or number of items, often used in the context of purchasing or production, where the focus is on limited or specialized orders.