You Purchased a Stock for $36 a Share,a Call Option

question 90

Multiple Choice

You purchased a stock for $36 a share,a call option with an exercise price of $35,and a put option with an exercise price of $34.What will be the value of your position when the options expire if the stock price is $37?

• A) $39
• B) $37
• C) $40
• D) $2

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Definitions:

Impulse

A sudden, involuntary urge to perform an action, often without premeditation.

Pleasure Principle

A psychoanalytic concept that suggests the driving force of behavior is the desire to maximize pleasure and avoid pain, guiding the id aspect of personality.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Schema

A cognitive framework or concept that organizes and interprets information in the brain, influencing perception and understanding.