If a Stock Price Does Not Rise or Fall by the Amount

question 65

True/False

If a stock price does not rise or fall by the amount of the option premium, the option will not be exercised.

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Definitions:

Marginal Product

The additional output produced as a result of employing one more unit of a particular input, holding other inputs constant.

Machines

Mechanical or electrical devices that perform tasks, usually operated by power or manual effort, designed to aid in work or accomplish specific functions.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, keeping other factors constant.

Wage Rate

The wage rate is the amount of money earned per unit of time, such as an hour, by an employee.