Exhibit 20 -Refer to Exhibit 20

question 48

Multiple Choice

Exhibit 20.3
Use the Information Below for the Following Problem(S)
On the last day of October, Bruce Springsteen is considering the purchase of 100 shares of Olivia Corporation common stock selling at $37 1/2 per share and also considering an Olivia option.
$\begin{array}{lcccc} &\quad\quad\quad\quad\quad\quad\quad\quad {\text { Calls }} &&\quad\quad\quad\quad\quad\quad\quad\quad {\text { Puts }} \\\text { Price } & \text { December } & \text { March } & \text { December } & \text { March } \\\hline 35 & 3\quad3 / 4 & 5 & 1\quad1 / 4 & 2 \\40 & 2\quad1 / 2 & 3\quad1 / 2 & 4\quad1 / 2 & 4\quad3 / 4\end{array}$
-Refer to Exhibit 20.3.If Bruce decides to buy a March call option with an exercise price of 35,what is his dollar gain (loss) if he closes his position when the stock is selling at 43 1/2?

• A) $225.00 loss
• B) $350.00 loss
• C) $225.00 gain
• D) $350.00 gain
• E) $850.00 gain

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Definitions:

Popular Democracy

A form of democracy that seeks to represent the will and interests of the majority of the population through broad participation and policies that benefit the common good.

Revolutionary War

The conflict between Thirteen American colonies and the British Empire (1775-1783), which resulted in the colonies gaining independence and forming the United States of America.

Republicanism

A political belief system based on the concept of citizenship within a republic, where sovereignty is vested in the populace.

Social Hierarchy

The stratification of individuals or groups in a society based on various factors such as wealth, race, education, or power.