Use the Table for the Question(s)below

question 43

Multiple Choice

Use the table for the question(s) below.
Consider the following Price and Dividend data for General Electric Company:
-Assume that you purchased General Electric Company stock at the closing price on December 31,2008 and sold it after the dividend had been paid at the closing price on January 26,2009.Your capital gains rate (yield) for this period is closest to:

• A)0.75%
• B)0.70%
• C)-8.80%
• D)-8.15%

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Definitions:

Stock Price

The cost of purchasing a share of a company in the stock market, which fluctuates based on supply and demand dynamics.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a specific time frame.

Premium

The amount paid for a product or service beyond its intrinsic value, often due to insurance, quality, or demand factors.

Profit

The financial gain achieved when the revenues generated from an activity exceed the expenses, costs, and taxes associated with that activity.