Suppose That Nielson Motors Stock Is Trading for $50 Per

question 17

Multiple Choice

Suppose that Nielson Motors stock is trading for $50 per share and that Nielson pays no dividends.What is the maximum possible price for a call option on Nielson Motors?

• A)$0
• B)$20
• C)$50
• D)infinite

---

Definitions:

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Emotional Flooding

A psychological term referring to a situation where an individual feels overwhelmed by their emotions to the point where they are unable to react or function effectively.

Problem of Communication

Refers to difficulties or barriers in effectively exchanging information, ideas, or feelings among individuals.

Rogers

Carl Rogers was a prominent American psychologist and one of the founders of humanistic psychology, well known for developing person-centered therapy.