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If You Buy a European Call Option on Canada Bonds

question 69

Multiple Choice

If you buy a European call option on Canada bonds with a strike price of 110 assuming that the premium is $0, and on the maturity date the market price of Canada bonds is 103, you will ________ the option and potentially make a profit of $________.


Definitions:

Utilitarian

Pertaining to or based on the principle of utilitarianism, which advocates for actions that maximize happiness and well-being for the majority of a population.

Subjective

Based on or influenced by personal feelings, tastes, or opinions.

Valence

In psychology, the intrinsic attractiveness or aversiveness of an event, object, or situation.

Drive Theory

A psychological theory that posits human behavior is motivated by biological drives to meet needs such as food, water, or sleep.

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