FIN 534 Week 11 Final Exam

FIN 534- WEEK 11 FINAL EXAM WITH COMPLETE SOLUTION GRADED A • Question 1 4 out of 4 points Braddock Construction Co.'s stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. Which of the following will occur if the stock price increases 10%, to $22 a share? • Question 2 4 out of 4 points Which of the following statements is CORRECT? Response Feedback: Rationale: Answer c is correct. See Figure 8−1...