Which of the Following Is an Example of a Call

question 44

Multiple Choice

Which of the following is an example of a call option which is out of the money?

• A) The option to sell at $11, the stock is worth $12.
• B) The option to buy at $13, the stock is worth $12.
• C) The option to buy at $12, the stock is worth $12.
• D) The option to sell at $13, the stock is worth $12.
• E) The option to buy at $11, the stock is worth $12.

---

Definitions:

Slippery Slope Fallacy

A logical fallacy that occurs when an argument suggests that a minor first step will lead to a chain of related and undesired events.

Fallacy Of Composition

The logical error of assuming that what is true for the individual parts must also be true for the whole group.

Slippery Slope Fallacy

A logical fallacy that asserts without sufficient evidence that a relatively small first action leads inevitably to a chain of related (negative) events.

Predicted Outcome

A predicted outcome is the expected result of an experiment or model, often based on theoretical insight or previous data.