It Is May 19^th and You Own a June,European Call

question 10

Multiple Choice

It is May 19^th and you own a June,European call on ABC Corp.with an exercise price of $50.The option trades at $40 and ABC is trading at $86.What should you do?

• A) Exercise the option now and take the profits.
• B) Buy more options on ABC Corp.
• C) Sell your ABC stock before its price declines.
• D) Sit and wait until the June expiration.

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A statistical test used to determine whether the mean of a sample is significantly different from a known population mean.

Research Hypothesis

An assertion or theory that a researcher puts forward as a basis for their research, proposing a potential outcome or relationship.

Engineering Science

A multidisciplinary field that applies principles from both engineering and science to solve complex problems and develop new technologies.

Research Hypothesis

An assertion or prediction based on theory or prior evidence, indicating a specific relationship or effect between variables.