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:

Brain Waves

Patterns of electrical activity in the brain, often measured by an EEG, associated with different states of consciousness.

Sucking Rate

refers to the frequency at which an infant sucks, often used in research to assess neural development and feeding readiness.

Heart Rate

This is the number of heartbeats per unit of time, usually expressed in beats per minute (bpm), indicating cardiovascular health.

Child Directed Speech

A language-speaking pattern utilized by adults or older children when communicating with young children, characterized by simplified vocabulary, higher pitch, and exaggerated intonation.