The Higher the Exercise Price

question 50

Multiple Choice

The higher the exercise price:

• A) the higher the call price.
• B) the lower the call price.
• C) has no effect on call price.
• D) the higher the stock price.
• E) the lower the stock price.

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Definitions:

Rule Consequentialists

Philosophers or ethical theorists who believe that adherence to beneficial rules or norms yields the best consequences.

Absolute

Something that is considered to be universal, unconditional, and complete in itself, often used in the context of truth or moral principles.

Utilitarian Theory

A normative ethical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Interests

Concerns, benefits, or advantages of a person or group.