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.

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Definitions:

Ingroup

A group to which an individual belongs, feels a sense of identity, and derives a positive self-esteem from membership.

Outgroup

Any group an individual does not belong to or identify with.

Discrimination

Discrimination is unjust or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Peripheral Route

A method of persuasion that uses low elaboration—where people minimally process the message. This method usually results in development of weaker attitudes.