An Investor Purchases a Call Option and Its Underlying Stock

question 48

Multiple Choice

An investor purchases a call option and its underlying stock on the same day.If the stock appreciates by 25%,the call option will appreciate by:

• A)more than 25%
• B)less than 25%
• C)exactly 25%
• D)0%
• E)less than 0%

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Definitions:

NLRA Union Certification Process

The procedure overseen by the National Labor Relations Board (NLRB) through which a union is officially recognized as a bargaining representative for a group of employees.

Associated

Connected or linked with something else, typically indicating a relationship or affiliation between entities or concepts.

NLRB

The National Labor Relations Board, a US federal agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in bargaining and legal matters.