Suppose You Purchase a Call Option on Asset XYZ That

question 52

Multiple Choice

Suppose you purchase a call option on Asset XYZ that has an exercise price of $100. The option price is $3 per share. Suppose that on the expiration date, you exercise your option at the current price of $106. What is your net profit or loss per share?

• A) -$3.00
• B) $0.00
• C) $3.00
• D) $6.00

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Definitions:

Encoding Failure

A situation in which information does not get stored in long-term memory because of inadequate or insufficient encoding processes.

Storage Failure

A failure in the ability to retain information over time, typically referring to long-term memory loss.

State-dependent Memory

The phenomenon that information learned in a specific mental or emotional state is more easily recalled when in that same state.

Memory Construction

The process by which the brain pieces together bits of information to create or reconstruct memories.