Use the Figure for the Question Below

question 100

Multiple Choice

Use the figure for the question below.
-You have shorted a call option on WSJ stock with a strike price of $50. The option will expire in exactly six months. If the stock is trading at $45 in three month, what will you owe for each share in the contract?

• A) $0
• B) $50
• C) $60
• D) $10

Analyze the objectives, criticisms, and legal aspects of affirmative action programs.

Identify the major causes of workplace deaths and the significance of workplace safety.

Know the qualification requirements for job applicants and the relevance of job specifications.

Understand the ethical and legal considerations in hiring decisions and the concept of employment discrimination.

---

Definitions:

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid to its shareholders in dividends.

Capital Gains

The profit earned from the sale of an asset, such as stocks or real estate, which has increased in value over the holding period.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and the type of taxes being calculated.

Dividend Irrelevance

Dividend irrelevance theory suggests that the dividend policy a company follows has no effect on the company’s stock price or its cost of capital.