Underlying Stock Price: 45

question 324

Multiple Choice

Underlying stock price: 45.80 Suppose you bought 10 Glaxo Oct 45 call contracts. Just before the option expires, the stock is selling for $50. What is your net profit (or loss) ? Ignore transaction costs.

• A) -$220.
• B) $1,200.00
• C) $1,600.00
• D) $2,200.00
• E) $5,000.00

Explain the concept of strategic compensation and its importance in aligning organizational goals with employee performance.

Describe various incentive schemes and their effectiveness in motivating employees.

Analyze the role of profit-sharing plans in organizational profit growth and employee motivation.

Discuss concerns related to executive compensation and its relationship to organizational performance.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, characterized by open-mindedness and the ability to question assumptions.

Well-supported Reasons

Arguments or explanations that are backed by solid evidence, making them persuasive and credible.

Empirical Research

A way of gaining knowledge by means of direct and indirect observation or experience, often involving systematic data collection and experimentation.

Anecdotes

Short, often amusing or interesting stories about a real incident or person.