Braddock Construction Co

question 26

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:

Direct Influence

occurs when an individual or entity explicitly persuades or directs the behavior or decisions of others, often through authority, communication, or decision-making power.

Memos

Brief written messages, typically used within an organization to communicate information, updates, or instructions.

Leadership Theories

Conceptual frameworks that seek to explain how leaders influence the behavior of individuals or groups to achieve common goals.

Leadership

Leadership is the act of guiding or influencing a group towards a goal or vision, often by encouraging and inspiring others to follow.