A Deep In-The-Money Call Option on Futures Is Exercised Early

question 19

Multiple Choice

A deep in-the-money call option on futures is exercised early because

• A)the intrinsic value is maximized
• B)it behaves like a futures but ties up funds
• C)the futures price is not likely to rise any further
• D)all of the above
• E)none of the above

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Definitions:

Psychological Contract

An unwritten set of expectations between an employee and their employer regarding mutual obligations and benefits.

Anticipatory Socialization

The process through which individuals learn and adopt the norms and behaviors necessary for future roles and social adjustments.

Psychological Contract

The unwritten and unspoken expectations and beliefs regarding the reciprocal obligations between employees and employers.

Encounter Stage

A phase in organizational socialization when a new employee begins to understand and adjust to the values, skills, and norms required for success in the job and organization.