The Common Stock of Mercury Motors Is Selling for $43

question 11

Multiple Choice

The common stock of Mercury Motors is selling for $43.90 a share. U.S. Treasury bills are currently yielding 4.5%. What is the current value of a one-year call option on Mercury Motors stock if the exercise price is $37.50 and you assume the option will finish in the money?

• A) $6.12
• B) $6.40
• C) $6.69
• D) $7.67
• E) $8.01

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Definitions:

Formative Evaluation Method

An assessment process used to monitor learning progress and provide ongoing feedback to learners and instructors.

Organizational Results

Outcomes or outputs that an organization aims to achieve, which can include financial performance, customer satisfaction, or operational efficiency.

Training Evaluation Survey

A tool used to assess the effectiveness, impact, and participant satisfaction of a training program.

Kirkpatrick's Hierarchical Model

A model used to assess training initiatives, which is divided into four stages: Reaction, Learning, Behavior, and Results.