You Notice That You Can Purchase an Option for $5

question 93

Multiple Choice

You notice that you can purchase an option for $5.The price of the underlying stock is currently $42.What is the option premium for this option?

• A) $5
• B) $37
• C) $42
• D) $47

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Definitions:

Unipolar

Referring to a mental health condition that involves periods of depression without the manic phases seen in bipolar disorder.

Mania

A mental state characterized by periods of great excitement, euphoria, delusions, and overactivity, often observed in bipolar disorder.

Pessimistic Explanatory Style

A tendency to explain negative events as being inevitable, personal, and pervasive.

Depression

A mental health condition marked by continuous experiences of sorrow, despair, and a disinterest or lack of enjoyment in activities.