The Current Market Price of a Share of CSCO Stock

question 84

Multiple Choice

The current market price of a share of CSCO stock is $22. If a call option on this stock has a strike price of $20, the call

• A) is out of the money.
• B) is in the money.
• C) sells for a higher price than if the market price of CSCO stock is $21.
• D) is out of the money and sells for a higher price than if the market price of CSCO stock is $21.
• E) is in the money and sells for a higher price than if the market price of CSCO stock is $21.

---

Definitions:

Motor Reproduction

The process of imitating or replicating a specific motor action observed in others.

Observational Learning

A learning process through which individuals acquire new behaviors, skills, or attitudes by watching others, also known as modeling.

Attention

The mental activity of focusing attention on a single element of one's surroundings, while disregarding other stimuli.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior being repeated, which can be positive (adding a desirable stimulus) or negative (removing an aversive stimulus).