It Is May 19 and You Own a June European

question 87

Multiple Choice

It is May 19 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.

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Definitions:

Formed Elements

Red blood cells, white blood cells, and platelets; compose 45% of blood volume.

Hemoglobin

A protein in red blood cells responsible for transporting oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.

Plasma

The liquid component of blood that carries cells and proteins throughout the body.

Serum Separator

A device or material in blood collection tubes that isolates serum from blood cells after centrifugation, used for various medical tests.