For European Options, the Value of a Call Plus the Present

question 16

Multiple Choice

For European options, the value of a call plus the present value of the exercise price is equal to

• A)the value of a put minus the value of a share.
• B)the value of a share minus the value of a call.
• C)the value of a put plus the value of a share.
• D)the value of a share minus the value of a put.

---

Definitions:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Dominance Hierarchy

A social organization in which individuals within a group are ranked relative to one another in terms of dominance and submission.

Social Groups

Collections of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity or identity.

Classical Conditioning

Type of learning whereby an unconditioned stimulus that elicits a specific response is paired with a neutral stimulus so that the response becomes conditioned.