The Price of ABC Stock Is Currently $42 Per Share

question 13

Multiple Choice

The price of ABC stock is currently $42 per share, but in six months you expect it to rise to $50. ABC does not pay a dividend. You buy a six-month call on ABC, with a strike price of
$45) The option cost $200. What holding period return do you expect on this call? Ignore transaction costs and taxes.

• A) 150%
• B) 200%
• C) 250%
• D) 300%

Comprehend the importance of resource calendars in both forward and backward passes.

Grasp how to execute a master schedule by breaking down major activities and assigning resources.

Learn the relationship between early and late start dates and the concept of total float in critical path methodology.

Distinguish between Gantt and PERT charts.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Income Statements

Income statements are financial documents that provide a summary of a company's revenue, expenses, and profits over a specific period, typically quarterly or annually.

After-Tax Return

The profit realized on an investment after accounting for any taxes paid.