Which of the Following Is Correct for the Owner of a June

question 25

Multiple Choice

Which of the following is correct for the owner of a June call,valued at $3,on XYZ Corp.with a strike price of $60? XYZ Corp.currently trades at $55.

• A) XYZ is expected to go to $63 per share.
• B) The option cannot currently be exercised.
• C) The option owner's current profit is $3 per share.
• D) The option may expire without value.

Analyze the impact of external benefits and costs on market outcomes.

Understand the role of government interventions in correcting market failures due to externalities.

Explain how subsidies, taxes, and regulatory measures affect economic welfare and market equilibrium.

Recognize examples of negative and positive externalities in various contexts.

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Definitions:

Time Utilities

The value added to products or services by making them available at the most beneficial time.

Airfreight

The transportation of goods by aircraft, typically used for time-sensitive or high-value shipments.

Supply Chain Strategy

An approach for managing the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Inventory Low

A situation in which stock levels of products are critically reduced, posing a risk of stockouts and potential lost sales.