Under Which Condition Does a Call Option Approach Its Upper

question 83

Multiple Choice

Under which condition does a call option approach its upper bound?

• A) When the stock price is far above the strike price
• B) When the stock price is closest to the strike price
• C) When the stock price is approaching zero
• D) When the option is approaching its expiration time

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Definitions:

Four-drive Theory

A motivational theory proposing that human beings are driven by the desires to acquire, bond, learn, and defend.

Esteem

Relates to the self-respect, self-worth, or regard that an individual has for themselves; can also refer to the admiration one receives from others.

Four-drive Theory

A motivational theory positing that human behavior is driven by four basic needs: the drive to acquire, bond, comprehend, and defend.

Rewards

Rewards are benefits or recognition given to individuals or groups for their performance and achievements.