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:

German Firm

A business or company that is registered, operates, or has its origins in Germany, adhering to the country's regulatory standards and cultural practices.

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Nations in the Arab League, sharing linguistic, cultural, and political traits mainly located in the Middle East and North Africa.

Cross Cultures

Refers to the interaction or comparison of two or more different cultures, emphasizing the exchange and understanding of diverse cultural practices.

Anger

is an intense emotional response to perceived provocation, frustration, or injustice, which can impact social interactions and decision-making.