Elizabeth Owns a Call Option on 100 Shares of Microsoft

question 36

Multiple Choice

Elizabeth owns a call option on 100 shares of Microsoft stock.She has decided to buy those shares.This purchase is commonly referred to as:

• A)striking the asset.
• B)expiring the option.
• C)exercising the option.
• D)putting the collar.
• E)the collar option.

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Definitions:

Mean, Median, Mode

Statistical measures of central tendency; mean is the average of a set of numbers, median is the middle value when numbers are arranged in order, and mode is the most frequently occurring value in a data set.

Positively Skewed

A distribution of data where most of the values gather on the left side, with the tail extending to the right, indicating that the mean is greater than the median.

Median

The middle value in a sorted list of numbers, which separates the higher half from the lower half.

Mode

The value that appears most frequently in a data set, representing the highest peak in a distribution.