You Paid $5 a Call Option on a Stock with an Exercise

question 87

Multiple Choice

You paid $5 a call option on a stock with an exercise price of $80.If the current stock price is $60, your net proceeds by exercising this option and selling the stock will be:

• A)($25).
• B)$0.
• C)$20.
• D)$60.

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Definitions:

Selective Attention

The cognitive process of focusing on one particular object or task in the environment while ignoring other irrelevant stimuli.

Blindsight

A condition in which individuals with blindness caused by brain damage can still respond to visual stimuli without consciously perceiving them.

Dual Processing

The principle that our mind operates on two levels: a conscious deliberate level and an unconscious automatic level.

Inattentional Blindness

The psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to a lack of attention, not vision defects or deficits.