A company's stock price increased by 20% in January and then decreased by 10% in February. What was the net percentage change in the stock price over these two months?

✓ Correct Answer: Option A

Let the initial price be P. After a 20% increase, the price is P * (1 + 0.20) = 1.20P. After a 10% decrease on the new price, it becomes (1.20P) * (1 - 0.10) = 1.20P * 0.90 = 1.08P. This represents an 8% increase from the original price P.