Suppose the Price of a Share of IBM Stock Is

question 8

Multiple Choice

Suppose the price of a share of IBM stock is $200. An April call option on IBM stock has a premium of $5 and an exercise price of $200. Ignoring commissions, the holder of the call option will earn a profit if the price of the share

• A) increases to $204.
• B) decreases to $190.
• C) increases to $206.
• D) decreases to $196.
• E) None of the options are correct.

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Definitions:

Job Interviews

The process where employers evaluate potential employees by asking questions to assess their suitability for a position.

Application Process

The series of steps required to apply for something, such as a job, school admission, or a license, often involving the submission of documents and undergoing evaluations.

Job Interview

A meeting between a job applicant and a potential employer to assess the suitability of the applicant for a position.

Employer

An individual or organization that hires people to perform services or work in exchange for compensation.