Russ Paid a Total of $125 to Purchase 10 Call

question 6

Multiple Choice

Russ paid a total of $125 to purchase 10 call options with a strike price of $23.50. What is the break-even stock price?

• A)$12.50
• B)$17.65
• C)$23.63
• D)$25.00
• E)$236.30

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Definitions:

Express Authority

An agent’s authority that the principal voluntarily and specifically sets forth as oral or written instructions in an agency agreement.

Apparent Authority

A situation where a reasonable person would understand that an agent had the power to act on behalf of a principal, even if the agent did not have actual authority.

Agency Relationship

A legal and principal relationship between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in business transactions.

Durable Power Of Attorney

A document that authorizes an agent to act on another’s behalf, with the power either surviving incapacity or becoming effective upon incapacity.