Exhibit 22 -Refer to Exhibit 22

question 20

Multiple Choice

Exhibit 22.1
Use the Information Below for the Following Problem(S)
$\begin{array}{|l|c|l|l|l|}\hline \text { Option Type } & & \text { Currency } &{\text { Canadian dollar }} \\\hline \text { Contract Size } & & 50000 & {\text { Canadian dollars }} \\\hline \text { Expiry } & & \text { April } & & \\\hline & & & & \\\hline \text { Strike } & \text { Call } & \text { Put } & & \\\hline \$ 0.815 & \$ 0.0118 & & & \\\hline \$ 0.820 & & \$ 0.0068 & & \\\hline\end{array}$
-Refer to Exhibit 22.1.If the spot rate at expiration is $0.80 and the call option was purchased,what is the dollar gain or loss?

• A) $123 gain
• B) $590 loss
• C) $312 gain
• D) $237 gain
• E) $0

---

Definitions:

Excess Supply

a situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price, leading to downward pressure on the price.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, intellectual property, and tangible goods.

Economic Efficiency

A measure of how well scarce resources are utilized for producing goods and maximising the satisfaction or utility of consumers.

Market Equilibrium

A condition where the supply and demand in the market equilibrate, leading to stable prices.