An Ethical Dilemma Occurs When There Is a Situation That

question 164

True/False

An ethical dilemma occurs when there is a situation that offers potential benefit or gain and is also unethical.

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Definitions:

Exercise Value

Equal to the current price of the stock (underlying the option) less the strike price of the option.

Call Options

Financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Strike Price

The price stated in the option contract at which the security can be bought (or sold). Also called the exercise price.

Premium

An amount paid in addition to the standard or nominal cost, often for insurance, bonds, or superior products or services.