A 45 Call Option on a Share Priced at $50

question 26

Multiple Choice

A 45 call option on a share priced at $50 is priced at $6.50. This call has an intrinsic value of ________ and a time value of ________.

• A)$6.50; $0
• B)$5.00; $1.50
• C)$1.50; $5.00
• D)$0; $6.50

Understand the historical development of business ethics as a field of study.

Recognize the importance of ethical practices in enhancing customer trust and satisfaction.

Identify the key legislative acts influencing business ethics and corporate governance.

Understand the role of consumers' rights and consumerism in business ethics.

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Definitions:

Standard Deviation

This metric calculates the dispersion of a dataset relative to its mean, demonstrating how spread out the numbers are.

Histogram

A graphical representation of data that groups numbers into ranges, showing the frequency of data within each range via bars.

Trimmed Mean

A method of averaging that removes a specified percentage of the largest and smallest values before calculating the mean, often used to reduce the effect of outliers.

Bootstrap Standard Error

A measure of the variability or dispersion of a statistic's sampling distribution, estimated using the bootstrap resampling method.