When a Company Writes a Call Option on New Stock

question 75

Multiple Choice

When a company writes a call option on new stock in the company,it is called a:

• A)convertible bond.
• B)put option.
• C)stock option.
• D)warrant.
• E)stock.

---

Definitions:

Self-Monitoring

The practice of observing and regulating one's own behavior in social situations based on the perceived expectation of others.

Cynical Performances

Actions characterized by disbelief in the sincerity or goodness of human motives and actions.

Romantic Relationships

Emotional and physical connections between individuals that often involve love, commitment, and intimacy.

Overjustification Effect

The tendency for salient rewards or threats to lead people to attribute the reason, or justification, for engaging in an activity to an external factor, which thereby undermines their intrinsic motivation for and enjoyment of the activity.