Assuming That You Entered into the Option and the Strike

question 19

Multiple Choice

Assuming that you entered into the option and the strike price were 160, what would be your net cash proceeds on July 15?

• A) $117,000.00
• B) $120,000.00
• C) $117,537.50
• D) $117,512.50

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Definitions:

Sacrifice Ratio

The cost of reducing inflation in terms of the amount of output or gross domestic product that is foregone.

Inflation

The tempo at which the comprehensive price tags for goods and services grow, depleting the shopping power.

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.

Low Sacrifice Ratio

A condition indicating that an economy can reduce inflation with a relatively small decrease in economic output or increase in unemployment.