Use This Fact Situation to Answer the Related Questions That

question 44

Multiple Choice

Use this fact situation to answer the related questions that follow. John was recently fired from a large company located in Toronto,Ontario,which does business over the Internet.After being fired,John moved to New York City,U.S.A. ,and then set up a blog in which he maligned his former employer and its business practices.When the company read the blog,it decided to sue John and the Internet Service provider (ISP) over which John's blog was carried.
In this case,the company will probably succeed against John in an action for

• A)the tort of defamation.
• B)a breach of the confidentiality provisions of John's employment contract.
• C)the tort of negligent misrepresentation.
• D)the tort of fraud.
• E)misrepresentation in contract.

Understand the effects of stock splits on option contracts.

Analyze the profitability and trading strategies associated with different market scenarios for both call and put options.

Grasp the concept of "at the money" for options and its impact on pricing.

Distinguish between the exercise price and the market price in option trading.

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Definitions:

Lipitor

A prescription medication, also known by its generic name atorvastatin, used to lower cholesterol and triglyceride levels in the blood.

Structure

The arrangement or organization of something, especially relating to physical form or construction.

Hydroxyl Group

A functional group consisting of an oxygen atom bonded to a hydrogen atom (-OH) and found in alcohols and phenols.

Functional Groups

Certain assemblages of atoms found in molecules which determine the characteristic chemical behaviors of those molecules.