An Investor Purchases a Call Option and Its Underlying Stock

question 48

Multiple Choice

An investor purchases a call option and its underlying stock on the same day.If the stock appreciates by 25%,the call option will appreciate by:

• A)more than 25%
• B)less than 25%
• C)exactly 25%
• D)0%
• E)less than 0%

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Definitions:

Central Traits

are the key characteristics that define an individual's personality and are thought to be central to how we perceive and describe others.

Secondary Traits

Personality characteristics that are less consistent and more situational, influencing behavior in fewer scenarios compared to primary traits.

Unconditional Positive Regard

A concept in psychology that involves accepting and supporting someone regardless of what they say or do, often used in therapeutic settings.

Self-actualization

A concept in psychology referring to the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.