Your Aunt Agatha Purchased a Call Option a Few Months

question 93

Multiple Choice

Your Aunt Agatha purchased a call option a few months ago.Today is the expiration date,so she must decide whether to exercise the option.Which of the following statements is correct? Do not consider brokers' commissions in your answer.

• A) Aunt Agatha doesn't need to make a decision about exercising the option today;in fact,it would be better if she waited until after the option expires.
• B) Aunt Agatha should exercise the option if the price of the stock is less than the exercise,or strike,price.
• C) Aunt Agatha should exercise the option if the price of the stock is greater than the exercise,or strike,price.
• D) Aunt Agatha should exercise the option,regardless of the current stock price.
• E) None of the above.

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Definitions:

Gender Role

Societal norms and expectations about the behaviors, attitudes, and activities deemed appropriate for males and females.

Nurture

In development, nurture includes all environmental influences that occur after conception, from the mother’s nutrition while pregnant to the culture of the nation.

Authoritative

A parenting style characterized by high expectations of maturity and communication from the parent to the child, combined with warmth and support.

Warmth

The quality of being kindly, genial, and showing a sincere interest in the comfort or well-being of others.