You Own a Call Option on ABC Stock

question 113

Multiple Choice

You own a call option on ABC stock. The exercise price is $25 and the current stock price is $23. The option payoff will _________ if the stock price increases by $5 and the payoff will _________ if the stock price decreases by $5.

• A) Increase; decrease
• B) Increase; remain the same
• C) Remain the same; increase
• D) Remain the same; decrease
• E) Decrease; remain the same

Understand the principles of shaping and its application in modifying behavior.

Comprehend the concept of behavior-environment-behavior interactions and reciprocal determinism in social learning theory.

Distinguish between different models of learning and their relevance to personality development, including classical conditioning, operant conditioning, and social-cognitive theory.

Grasp the internal and external factors that influence behavior according to Bandura's social-cognitive theory.

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Definitions:

Direct Labor

The wages and other costs for labor directly involved in the production of goods or services, excluding indirect labor costs.

Standard Costs

Predetermined costs for materials, labor, and overhead, against which actual costs are compared.

Cost of Goods Sold

Expenses directly associated with producing goods a company sells, entailing labor and material costs.

Standard Cost Variances

The differences between actual costs and standard costs in manufacturing, divided into categories such as materials, labor, and overhead.