Which of the Following Is Correct for the Owner of a June

question 25

Multiple Choice

Which of the following is correct for the owner of a June call,valued at $3,on XYZ Corp.with a strike price of $60? XYZ Corp.currently trades at $55.

• A) XYZ is expected to go to $63 per share.
• B) The option cannot currently be exercised.
• C) The option owner's current profit is $3 per share.
• D) The option may expire without value.

---

Definitions:

Associative Learning

The process by which an individual learns the connection between two stimuli, or a behavior and a stimulus, through conditioning.

Genetic Predispositions

The inherited genetic patterns that influence the likelihood of developing certain diseases or traits.

Blink

A reflex that closes and then opens the eyelids quickly to help lubricate and protect the eye.

Puff of Air

A stimulus often used in psychological experiments to trigger a blink reflex or measure reactions, typically by delivering a quick burst of air towards the eye.