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.

---

Definitions:

Parental Investment

The time and energy parents expend for their offspring's benefit, including aspects of care, protection, and teaching.

Mating Strategies

Behavioral approaches used by individuals to attract and select partners for reproduction, based on evolutionary biology and social influences.

Evolutionary Perspective

An approach in psychology that analyzes human behavior through the lens of natural selection and adaptation over generations.

Gender And Infidelity

The study of how gender influences attitudes towards and behaviors related to infidelity in romantic relationships.