Suppose That in June 2013 You Bought a Call Option

question 188

Multiple Choice

Suppose that in June 2013 you bought a call option that allows you to buy 100 shares of a certain stock for $20 before October 2013. If the market price of the stock at some point before October 2013 is $23, and you exercise your option, what will happen?

• A) You will make a $30.00 profit.
• B) You will make a $300.00 profit.
• C) You will make a $3000.00 profit.
• D) You will incur a loss of $30.00.
• E) You will incur a loss of $300.00.

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Definitions:

Comparative Approach

A method that involves comparing different entities or situations to analyze similarities, differences, and outcomes.

Diversity Program

A diversity program is an organizational initiative aimed at promoting inclusion and facilitating respect for differences among employees, such as race, gender, ethnicity, and sexual orientation.

Stereotyping

Involves assigning generalized attributes, beliefs, or behaviors to members of a group based on their membership in that group.

Intolerance

The inability or unwillingness to accept and respect differing views, beliefs, or practices.