What Is the Current Price Per Underlying Share If You

question 34

Multiple Choice

What is the current price per underlying share if you wish to buy a June $32.50 call option on General Electric stock?

• A) $0.68
• B) $0.70
• C) $0.73
• D) $1.60
• E) $1.62

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Definitions:

Marginal Cost

The financial outlay for producing an incremental unit of a product or service.

Short-Run Supply

The total quantity of a good or service that businesses are willing and able to sell at current prices in a short time period.

Implicit Cost

The opportunity costs that are not directly paid or seen but represent real costs to a business, such as the value of time or resources.

Short Run

A period during which at least one of a firm's inputs is fixed, limiting the firm's capacity to adjust to market changes.