Which of the Following Enables an Arbitrage Profit to Be

question 16

Multiple Choice

Which of the following enables an arbitrage profit to be made (excluding transaction costs) from a call option if the market price of the underlying share is $5 50,the price of the call is $1 50,and the exercise price is $3 80?

• A)Buy the call option,exercise it and sell the underlying share.
• B)Buy a put option,exercise it and buy the underlying share.
• C)Buy a call option and hold onto it until expiry.
• D)Sell a put option now and realise the profit.

Understand the objectives organizations and employees have regarding benefits and services.

Discover techniques to ease the administrative burden of managing benefit packages.

Understand the basic principles of compensation and its impact on employee needs and security.

Comprehend the concept and importance of internal and external equity in compensation management.

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Definitions:

Placebo Effect

The phenomenon where an individual experiences a perceived improvement in condition due to their expectations, not because the treatment has a therapeutic effect.

Symptoms

Observable signs or indications of the existence of a disease, condition, or the presence of an underlying psychological or physical disorder.

Exposure Therapy

A psychological treatment method that involves gradual exposure to feared stimuli in order to reduce the fear response over time.

Fear of Water

An intense and persistent anxiety about being in or around water, also known as aquaphobia.