You Own a Call Option on Anneco Stock That Expires

question 91

Multiple Choice

You own a call option on Anneco stock that expires in one year.The exercise price is $34.50.The current price of the stock is $36.00 and the risk-free rate of return is 3%.Assume that the option will finish in the money.What is the current value of the call option?

• A)$1.50
• B)$2.50
• C)$3.50
• D)$4.50
• E)$5.50

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Definitions:

Conscientiousness

A personality trait characterized by organization, responsibility, and dependability.

Psychodynamic Theories

All the diverse theories descended from the work of Sigmund Freud that focus on unconscious mental forces.

Basic Personality Traits

Refer to the essential characteristics that form the foundation of an individual’s personality.

Unconscious Mental Processes

Mental activities beyond conscious awareness, influencing feelings, thoughts, and behaviors without one's explicit understanding.