Louise Just Purchased 3 Call Option Contracts on GE Stock

question 20

Multiple Choice

Louise just purchased 3 call option contracts on GE stock.How many shares of stock can she buy at the strike price based on these contracts?

• A)3
• B)30
• C)300
• D)30,000
• E)300,000

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Definitions:

Insight Learning

Insight learning is the process of learning how to solve a problem or do something new by applying what is already known, involving an 'aha' moment of understanding.

Generalization

The process of applying the principles learned from specific instances to broader and different situations.

Discrimination

In psychology, the ability to distinguish between different stimuli and respond appropriately according to their differences.

Modeling Effect

Learning a new behavior from a model through the acquisition of new responses.