A Stock Price Is Currently $23

question 11

Multiple Choice

A stock price is currently $23.A reverse (i.e short) butterfly spread is created from options with strike prices of $20,$25,and $30.Which of the following is true?

• A) The gain when the stock price is greater than $30 is less than the gain when the stock price is less than $20
• B) The gain when the stock price is greater than $30 is greater than the gain when the stock price is less than $20
• C) The gain when the stock price is greater than $30 is the same as the gain when the stock price is less than $20
• D) It is incorrect to assume that there is always a gain when the stock price is greater than $30 or less than $20

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Definitions:

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Motivation Factors

The various internal and external factors that stimulate the desire and energy in people to be continually interested and committed to a job, role, or subject.

Hygiene Factors

Elements related to the job environment that do not increase job satisfaction but, if absent, can lead to dissatisfaction.

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A measure of workers' contentedness with their job, including aspects like the nature of the work, and their perception of the organization.