A Call Option Is Priced at $4

question 91

Multiple Choice

A call option is priced at $4.31 and has a strike price of $75. Even the stock price at expiration has risen to $78.32, what is the breakeven stock price?

• A) $75.00
• B) $79.31
• C) $78.32
• D) $70.69
• E) $82.63

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Definitions:

Biological Preparedness

The concept that organisms are innately predisposed to form associations between certain stimuli and responses, facilitating learning.

Inedible

Something that is not suitable or safe for consumption as food.

Puzzle Box

An experimental apparatus used in animal learning research, where an animal must solve a problem or manipulate mechanisms to escape or obtain a reward.

Law of Effect

A principle in psychology that states behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.