NZMA Stock Is Currently Selling for $128

question 54

Multiple Choice

NZMA stock is currently selling for $128. Which of the following options is "in-the- money"?

• A) March 130 call
• B) February 125 call
• C) March 125 put
• D) February 100 put

---

Definitions:

Network Effects

Increases in the value of a product to each user, including existing users, as the total number of users rises.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on willingness to pay, rather than differences in production costs.

"Fair Return" Price

A price set at a level intended to allow a firm to cover its costs and earn a reasonable profit, often regulated in public utility sectors.