A Stock Is Trading at $70

question 9

Multiple Choice

A stock is trading at $70. A one-month at-the-money call option on the stock is priced at $0.10. The risk free rate of interest is 2%. Which of the following statements is most accurate?

• A) There is no arbitrage opportunity here.
• B) A risk-less arbitrage strategy is to buy the call, short the stock and lend the present value of the strike for one month.
• C) A risk-less arbitrage strategy is to short the call, buy the stock and borrow the present value of the strike for one month.
• D) There is not enough information to decide whether or not there is an arbitrage.

Acknowledge the impact of hormones on behavior and physiological responses.

Grasp the significance of evolutionary perspectives on social behavior and motivation.

Comprehend the hierarchical structure of human needs according to Maslow.

Understand the role of physiological needs in motivating behavior.

---

Definitions:

Obstructionist Strategy

A corporate social responsibility strategy that tries to avoid and resist pressures for social responsibility.

Economic Responsibility

The obligation of an organization to make decisions and take actions that will contribute to the economic well-being of society.

Classical View

A perspective on management and organizational theory that emphasizes efficiency, hierarchical structure, and the importance of planning and formal procedures.

CSR

Corporate Social Responsibility (CSR) refers to a company's commitment to operate in an economically, socially, and environmentally sustainable manner.