The Price at Which the Holder of an Option Buys

question 81

Multiple Choice

The price at which the holder of an option buys or sells a share of stock when the option is exercised is called the ________ price.

• A) strike
• B) American
• C) dilutive
• D) none of the above

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Definitions:

Initial Endowment

The initial quantity of goods, resources, or wealth that an individual or entity possesses at the start of a period or game.

Pareto Optimal

A distribution of resources from which it is impossible to reallocate in order to make any individual better off without making at least one individual worse off.

Initial Endowment

The initial quantity of assets, goods, or resources that an agent or economy possesses at the start of a period.

Competitive Equilibrium

A state in a market where supply equals demand, and no participant has the ability to influence prices.