You Have Entered into a Call Option Contract for 1

question 41

Multiple Choice

You have entered into a call option contract for 1 period. The stock is selling for $28, you borrowed 412 at 8% and the delta is .6. What is the cost of the call?

• A) $8.89.
• B) $16.00.
• C) $5.69.
• D) $9.60.

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Definitions:

Higher Order Needs

In Maslow's hierarchy, these refer to psychological and self-fulfillment requirements such as esteem and self-actualization.

Self-Actualisation

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Psychological Contracts

An unwritten agreement between employees and employers regarding mutual expectations.

Performance-Outcome Contingencies

The relationship between the performance of specific actions and the resulting outcomes, emphasizing the role of rewards or consequences.