At What Point on the Graph of Possible Values for a Call

question 36

Multiple Choice

At what point on the graph of possible values for a call option does the buyer break even financially?

• A) When the stock price equals the strike price
• B) At any point on the upward-sloping segment of the graph
• C) When the stock price equals the cost of the option plus the strike price
• D)At the point where the graph intercepts the y-axis

---

Definitions:

Normative Social Influence

External social pressures that drive us to adjust ourselves in efforts to be embraced and approved by others.

Group Polarization

The phenomenon where a group of individuals tends to make decisions that are more extreme than the initial inclination of its members.

Approval

The act of accepting or consenting to something, often given formally or officially.

Learner

An individual who is acquiring knowledge or skill through study, experience, or being taught.