Theo Paid a Total of $50 to Purchase 4 Call

question 104

Multiple Choice

Theo paid a total of $50 to purchase 4 call options with a strike price of $54. What is the break-even stock price?

• A)$12.50
• B)$25.00
• C)$23.63
• D)$54.13
• E)$56.32

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Definitions:

Formal Operational Thought

In Piaget’s theory, the fourth and final stage of cognitive development, characterized by more systematic logical thinking and by the ability to understand and systematically manipulate abstract concepts.

Metacognition

The awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Hypothetical Thought

The ability to consider ideas, scenarios, and possibilities that do not necessarily reflect current reality or direct experiences.

Deductive Reasoning

A method of deduction where a final judgment comes from the consistency of numerous assumed-to-be-true premises.