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Strayer University - FIN 534 WEEK 11 FINAL EXAM PART 1. Complete Solution. A+ Graded $15.49
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Strayer University - FIN 534 WEEK 11 FINAL EXAM PART 1. Complete Solution. A+ Graded
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  • FIN 534
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Strayer University - FIN 534 WEEK 11 FINAL EXAM PART 1. Complete Solution. A+ Graded.Question 1 2 out of 2 points Which of the following statements is CO RRECT? Selected Answer: If the underlying stock does not pay a dividend, it does not make good economic sense to exercise a call option prior to ...

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  • February 22, 2022
  • 14
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • fin 534 week 11
  • an opton that gives
  • strayer university fin 534 week 11 final exam part 1 complete solution a graded
  • fin 534 week 11 final exam part 1
  • which of the following statements is correct

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  • Strayer University
  • FIN 534
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Question 1

2 out of 2 points




Which of the following statements is CORRECT?

Selected
Answer:
If the underlying stock does not pay a dividend, it does not make good economic
sense to exercise a call option prior to its expiration date, even if this would yield an
immediate profit.

Correct
Answer:
If the underlying stock does not pay a dividend, it does not make good economic
sense to exercise a call option prior to its expiration date, even if this would yield an
immediate profit.

Question 2

2 out of 2 points




An option that gives the holder the right to sell a stock at a specified price at some future time is

Selected Answer:

a put option.

Correct Answer:

a put option.

Question 3

2 out of 2 points

, Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also
available, some with a strike price of $25 and some with a strike price of $35. Both options expire in
three months. Which of the following best describes the value of these options?

Selected
Answer:
If Cazden's stock price rose by $5, the exercise value of the options with the $25
strike price would also increase by $5.

Correct
Answer:
If Cazden's stock price rose by $5, the exercise value of the options with the $25
strike price would also increase by $5.

Question 4

2 out of 2 points




Which of the following statements is CORRECT?

Selected
Answer:
The market value of an option depends in part on the option's time to maturity and
also on the variability of the underlying stock's price.

Correct
Answer:
The market value of an option depends in part on the option's time to maturity and
also on the variability of the underlying stock's price.

Question 5

2 out of 2 points




Which of the following statements is most correct, holding other things constant, for XYZ
Corporation's traded call options?

Selected Answer:

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