Calculate the Value of a Long Call If the Exercise

question 93

Multiple Choice

Calculate the value of a long call if the exercise price is $10.00,the premium is $1.50 and the spot price is $8.00,given V = max(S-X,0) - P.

• A) -$3.00
• B) -$1.50
• C) $0.00
• D) $0.50

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Definitions:

Membership Homogeneity

Refers to the degree of similarity or uniformity within a group or organization's members.

Organizations

Entities that are comprised of individuals and resources structured and managed to pursue collective goals.

Distributed Leadership

An approach to leadership that involves sharing responsibility among multiple members of an organization rather than centralizing power in a single leader.

Wheel Communication Structure

is a system of information exchange characterized by a central figure through which all communications pass, resembling the spokes of a wheel.