An Investor Purchases a Call Option and Its Underlying Stock

question 39

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) none of the above

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Definitions:

Functional Plans

Functional plans are detailed strategies developed for specific areas within an organization, such as sales, marketing, or HR, outlining how goals will be achieved in those areas.

Operational Plans

Detailed, short-term strategies designed to achieve specific objectives within a business.

Standing Plans

Established procedures or policies in an organization that guide decision-making and actions for recurring situations or operations.

Single-use Plans

Strategic plans developed for a one-time project or event that are not intended to be repeated or reused.