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For Premium-Priced Stock Options,a Stockholder Realizes a Gain Only When

Question 40

Multiple Choice

For premium-priced stock options,a stockholder realizes a gain only when the:


A) market value is equal to the exercise price.
B) selling price is lower than the exercise price.
C) selling price is equal to the exercise price.
D) market value exceeds the exercise price.

Correct Answer:

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