Option Pay-Offs: You Have Sold a Call Option on News

question 3

Multiple Choice

Option pay-offs: You have sold a call option on news Unlimited shares with a strike price of $40. You do not intend to make any other transactions before the options expiration date. The current share price is $20. Which of the following statements best describes your hopes for the share?

• A) You want the share price to fall.
• B) You want the share price to rise.
• C) You are indifferent, as long as the share price stays under $40.
• D) It doesn't matter; you are indifferent to changes in the share price.

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of an organization, influencing its functioning and identity.

Edgar Schein

A notable American organizational psychologist known for his contributions to the understanding of organizational culture, leadership, and career dynamics.

Peter Drucker

An Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

Interpersonal Sensitivity

The ability to perceive and understand the emotions and thoughts of others, enhancing communication and relationships in personal and professional settings.