A Call Option Selling for $8 with a $45 Strike

question 32

True/False

A call option selling for $8 with a $45 strike price on stock with a market price of $40 has a speculative premium of $3.

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Definitions:

Surface Elements

The basic visual and tactile aspects of a physical surface, including texture, smoothness, and other topographical features.

Symbol

A hallmark, icon, or language that points to, mirrors, or is accepted as indicating a perception, material, or affinity.

Circularity

A geometric term referring to the attribute of a shape being round, measured typically by how much a part deviates from a perfect circle.

Feature Control Frame

A rectangular box that contains the geometric characteristics and tolerances applicable to the features of parts in technical drawings.