An Investor Purchases 2 Call Options on XYZ Stock with a Strike

question 3

Multiple Choice

An investor purchases 2 call options on XYZ stock with a strike price of $50.The call premium is $2.65 each.The investor will breakeven at expiration if the stock price of XYZ is:

• A) $50
• B) $47.35
• C) $55.30
• D) $52.65

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Definitions:

Ethical Dilemmas

Situations in which a choice must be made between two or more morally conflicting options, with no clear right or wrong answer.

Obedience Research

The study of how individuals comply with orders or commands from those of higher authority, often explored through experiments and psychological evaluations.

Replication

The process of repeating a research study or experiment to verify its findings.

Solomon Asch Experiment

A series of psychological experiments conducted by Solomon Asch, demonstrating the power of conformity in groups.