A Stock Is Currently Selling for $70 Per Share and Its

question 64

Multiple Choice

A stock is currently selling for $70 per share and its call option has a $90 exercise price.What is the lower limit on the value of the call option?

• A) - $20
• B) 0
• C) $10
• D) $20

---

Definitions:

Diabetes

A group of metabolic diseases characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin production or action.

Antibiotic Resistance

A phenomenon where bacteria evolve to survive exposure to antibiotics, making the drugs less effective.

Bacteria

Microscopic, single-celled organisms found in virtually every environment on Earth, capable of performing a vast array of metabolic functions.

Selection Pressure

Environmental factors that influence the reproductive success of individuals or populations, leading to evolution through survival of the fittest.