A One-Year Call Option on a Stock with a Strike

question 2

Multiple Choice

A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike price of $30 costs $4.Suppose that a trader buys two call options and one put option.The breakeven stock price above which the trader makes a profit is

• A) $35
• B) $40
• C) $30
• D) $36

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Definitions:

End-use Factors

Considerations regarding how and for what purpose a product will be used by the consumer, influencing design and marketing strategies.

Psychographic Factors

Characteristics of consumers that include lifestyle, values, attitudes, and psychological influences that affect buying behaviors.

Demographic Factors

Attributes of a population such as age, race, gender, income, and education that influence consumer behavior and business strategies.

Internal Data

Information generated from within the organization, used for decision-making, analysis, and strategic planning.