If a General Electric January 20 Call Option with a Strike

question 33

Multiple Choice

If a General Electric January 20 call option with a strike price of $45 were about to expire and the market price of the underlying GE stock was $51.17, the price of the call option would have to be __________ to eliminate arbitrage opportunities.

• A) $11.17
• B) $33.83
• C) $45.00
• D) $51.17

Understand the concept of least-costly and profit-maximizing combinations of resources and their impact on profits.

Recognize how elasticity of resource demand is measured and the factors that affect it.

Differentiate between derived demands for labor and other types of resource demands.

Evaluate the effects of price changes on the demand for labor and other resources, considering the substitution and output effects.

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Definitions:

Positron Particle Emission

A type of beta decay in which a positron is ejected from an atomic nucleus, transforming a proton into a neutron.

Beta Particles

High-speed electrons or positrons emitted by certain types of radioactive decay, such as beta decay.

Alpha Particles

Helium-4 nuclei emitted during radioactive decay, consisting of two protons and two neutrons, with a +2 charge, commonly used in radiation therapy and experiments.

Positron Particles

Elementary particles of antimatter with the same mass as electrons but with a positive charge.