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:

Capacities To Enjoy

The inherent potential or capability individuals possess to derive satisfaction or pleasure from various activities or consumptions.

Baby Boomers

The demographic cohort following World War II, typically defined as individuals born from 1946 to 1964.

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The unequal distribution of income within a population, often leading to social and economic disparities.

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The total number of people who are employed and unemployed but seeking work, representing the available labor supply in an economy.