A Stock Is Selling for $45

question 8

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 percentage of the common stock price does the speculative premium represent?

• A)16.39%
• B)14.375%
• C)12.57%
• D)4.38%
• E)3.83%

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Definitions:

IAT

IAT (Implicit Association Test) is a psychological assessment tool designed to measure implicit or unconscious biases and attitudes by analyzing response times to various stimuli.

TAT

Thematic Apperception Test, a projective psychological test that involves presenting individuals with ambiguous images and asking them to create stories about them, revealing their underlying motives, concerns, and the way they see the social world.

Rorschach

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both.

Personality Testing

The assessment of individual personality characteristics, typically through questionnaires or inventories, used for psychological, educational, and employment settings.