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:

Programmed Instruction

A method of self-learning through the use of instructional materials that are segmented into small units, each of which is followed by a test.

On-The-Job Training

A hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.

Hierarchical Sequencing

A method in project management and software development where tasks are completed in a specific, ordered sequence, often based on priority or dependency.

Employee Orientation

A process of introducing new employees to their roles, the company culture, policies, and their colleagues.