Which of the Following Is an Example of a Call

question 1

Multiple Choice

Which of the following is an example of a call option which is in the money?

• A) The option to sell at $11, the stock is worth $12.
• B) The option to buy at $13, the stock is worth $12.
• C) The option to buy at $12, the stock is worth $12.
• D) The option to sell at $13, the stock is worth $12.
• E) The option to buy at $11, the stock is worth $12.

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Definitions:

Proposed Interstate Highway

A suggested or planned addition to the interstate highway system that may be under consideration or development but is not yet in existence.

Shareholders

Entities or individuals that own a part of a corporation through their stock holding, which entitles them to a share of the company’s profits and a say in its operations.

Surrender

In legal and financial contexts, to surrender means to voluntarily give up a right, position, property, or claim, often in exchange for something else or to end a dispute.

Preferred Stock

A type of stock that gives its holders precedence over common stockholders in terms of dividends and claims on assets, but typically does not have voting rights.