A Stock Is Selling for $45

question 11

Multiple Choice

A stock is selling for $45.75, with a call option available at a $40 strike that has a premium of $7.50. What is the speculative premium of the call?

• A)$.75
• B)$1.75
• C)$5.00
• D)$5.75
• E)$7.50

Analyze the functional areas of a cultural system.

Understand the concepts and theories of humanistic, behaviorist, psychoanalytic, and cognitive psychology.

Recognize the purpose and process of revising psychological tests and the importance of standardized testing.

Gain knowledge about the five-factor model of personality.

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Definitions:

Securities Act of 1934

A U.S. federal law governing the secondary trading of securities (stocks, bonds, and debentures) to protect investors against malpractice.

Tender Offer

A public offer made by a person or company to purchase shares from shareholders, typically at a premium to market price, in an attempt to take control of the company.

Crowdfunding

The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.

Internet

A vast network that connects computers across the world, allowing for the sharing and transmission of data and information.