Laney Just Purchased 3 Call Option Contracts on Microsoft Stock

question 79

Multiple Choice

Laney just purchased 3 call option contracts on Microsoft stock. How many shares of stock can she buy at the strike price based on these contracts?

• A)3
• B)30
• C)300
• D)30,000
• E)300,000

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Definitions:

Producer

An individual or organization that creates goods or services to sell to consumers.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of consumers, typically based on willingness to pay.

Deadweight Loss

A loss in economic efficiency that occurs when the equilibrium output is not achieved or when supply and demand are out of balance.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on willingness to pay.