Deeble Construction Co

question 3

Multiple Choice

Deeble Construction Co.'s stock is trading at $30 a share.Call options on the company's stock are also available, some with a strike price of $25 and some with a strike price of $35.Both options expire in three months.Which of the following best describes the value of these options?

• A)The options with the $25 strike price will sell for $5.
• B)The options with the $25 strike price will sell for less than the options with the $35 strike price.
• C)The options with the $25 strike price have an exercise value greater than $5.
• D)The options with the $35 strike price have an exercise value greater than $0.
• E)If Deeble's stock price rose by $5, the exercise value of the options with the $25 strike price would also increase by $5.

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Definitions:

King Cotton Diplomacy

The strategy used by the Confederate States during the American Civil War to encourage British and French support by leveraging their cotton supply.

Economic Self-sufficiency

The ability of an economy to produce all the goods and services it needs without importing them from other countries.

Confederacy

Commonly refers to the Confederate States of America, a coalition of 11 southern states that seceded from the United States from 1860-1865 during the American Civil War.

Georgia 1861

marks a period when Georgia, a Southern state, declared secession from the United States and joined the Confederate States of America during the Civil War.