How Much Must the Stock Be Worth at Expiration in Order

question 75

Multiple Choice

How much must the stock be worth at expiration in order for a call holder to break even if the exercise price is $50 and the call premium was $4?

• A) $46
• B) $50
• C) $52
• D)$54

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Definitions:

Problem-solving Training

A cognitive-behavioral technique aimed at teaching individuals strategies to identify and effectively solve problems.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Solution Implementation

The process of putting a plan or solution into action to solve a problem.

Cognitive Assessment

The measurement and evaluation of an individual's mental functions and capabilities, often used to identify areas of cognitive strength and weakness.