Braddock Construction Co

question 5

Multiple Choice

Braddock Construction Co.'s stock is trading at $20 a share.Call options that expire in three months with a strike price of $20 sell for $1.50.Which of the following will occur if the stock price increases 10%, to $22 a share?

• A) The price of the call option will increase by more than $2.
• B) The price of the call option will increase by less than $2, and the percentage increase in price will be less than 10%.
• C) The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.
• D) The price of the call option will increase by more than $2, but the percentage increase in price will be less than 10%.
• E) The price of the call option will increase by $2.

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Definitions:

Oppositional Defiant Disorder

A behavioral disorder characterized by chronic aggression, frequent temper tantrums, and a defiant attitude, primarily diagnosed in children.

Aggressive Children

Children who exhibit behaviors that are hostile, destructive, or violent towards others.

Nonaggressive Children

Children who do not exhibit aggressive behaviors, characterized by their tendency to resolve conflicts in peaceful ways.

Antisocial Personality Disorder

A behavioral health issue characterized by enduring habits of not respecting or transgressing against the rights of others.