Instructions: Please Write a Thorough, Well-Organized Essay to Answer Each

question 62

Essay

Instructions: Please write a thorough, well-organized essay to answer each question. Reconsider the following quote from Václav Havel: The worst of it is that we live in a spoiled moral environment. We have become morally ill because we are used to saying one thing and thinking another. We have learned not to believe in anything, not to care about each other, to worry only about ourselves....
This observation was directed toward the Communist system that had just collapsed in Czechoslovakia. But can it also be applied to our own Western society? Reflect upon Havel's observation.

---

Definitions:

Premium

The amount by which the price of something, such as a security or insurance policy, exceeds its face value or principal.

European Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price on a specified date.

Exercise Price

The price at which the holder of an option contract may buy (in the case of a call option) or sell (in the case of a put option) the underlying asset when the option is exercised.

Underlying Asset

The financial asset upon which derivative instruments, such as futures, options, or warrants, are based or derived from.