A Stock Is Currently Selling for $70 Per Share

question 70

Multiple Choice

A stock is currently selling for $70 per share.What is the lower limit on the value of a call option with an exercise of $90?

• A) −$20
• B) $0
• C) $10
• D) $20

---

Definitions:

Two-Step Flow Theory

A communication theory that suggests information from the media moves in two distinct stages: first to opinion leaders, who in turn pass it on to a wider population.

Early Adopters

Individuals or organizations that begin using a new product, technology, or innovation early in its life cycle, often influencing others.

Diffusion of Innovations Theory

A sociological model that explains how new ideas, practices, or products gain momentum and spread through a specific population or society over time.

Public Awareness

The extent to which the general population is informed about an issue, cause, or brand, often as a result of targeted information campaigns.