It Is May 19th and You Own a June, European

question 36

Multiple Choice

It is May 19th and you own a June, European call on ABC Corp.with an exercise price of $50.The option trades at $40 and ABC is trading at $86.What should you do?

• A)Exercise the option now and take the profits.
• B)Buy more options on ABC Corp.
• C)Sell your ABC stock before its price declines.
• D)Sit and wait until the June expiration.

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Definitions:

Power Culture

An organizational culture dominated by a central figure or group possessing a significant amount of control and influence over decisions and resources.

Core Culture

The fundamental values, beliefs, and principles that serve as the foundation for an organization's management system and practices.

Observable Culture

The aspects of an organization's culture that can be seen or experienced through their practices, rituals, and symbols.

Main Values

Fundamental beliefs or principles that are considered most important within a society, organization, or individual's life.