Andrea Wrote a Three-Month Call on Echo Stock

question 7

Multiple Choice

Andrea wrote a three-month call on Echo stock.The option cost $200 and the strike price was $10.What does the market price of Echo have to be for Andrea to break-even on this investment if the option is exercised? Ignore transaction construed taxes.

• A) $10
• B) $12
• C) $8
• D) Cannot be determined from the information provided

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Definitions:

Group Dynamics

The patterns of interaction and relationships that influence the behavior and effectiveness of a group.

External Perspective

Viewing an organization or situation from the outside to gain an unbiased understanding or to assess impacts that come from external sources.

Individual

A single, separate organism or entity, often referenced in the context of discussing human beings and their unique characteristics.

Behavior

The range of actions and mannerisms made by individuals, groups, or systems, in conjunction with themselves or their environment, which includes the other systems or organisms around as well as the physical environment.