John Doe Is Employed with the IT Department in Abel

question 143

Multiple Choice

John Doe is employed with the IT department in Abel & Associates,which provides financial consultancy services to several wealthy investors.He is approached by an investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company.Which of the following statements best reflects John's thoughts if he is at the principled level of moral development?

• A)My job is to protect the information that this company deals in and I should not be violating my duties.
• B)By stealing from another person,I will be in violation of the moral standards I've come to expect of myself.
• C)If my involvement is detected,my friends and family would be humiliated by my actions.
• D)If I am convicted for this crime,I will surely be imprisoned and will probably never be employed anywhere else.

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Definitions:

Black-Scholes Option-Pricing

The Black-Scholes Option-Pricing model is a mathematical formula used to determine the theoretical price of European-style options, considering factors like volatility, underlying asset price, and time to expiration.

Early Exercise

The action of exercising an option before its expiration date, typically relevant in the context of American-style options.

Time Varying Stock Price Volatility

Refers to the fluctuation in stock prices over time, showing variability in the rate of returns under different market conditions.

Changing Expected Returns

The alteration in the anticipated returns on an investment due to changes in market conditions, company performance, or other factors.