Exhibit 20 -Refer to Exhibit 20

question 81

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 buys a March put option with an exercise price of 40,what is his dollar gain (loss) if he closes his position when the stock is selling at 43 1/2?

• A) $825.00 loss
• B) $475.00 loss
• C) $350.00 loss
• D) $25.00 loss
• E) He has a gain

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Definitions:

Respondeat Superior

The legal doctrine that imposes liability on employers and makes them pay for torts committed by their employees within the scope of the employer’s business. Literally translated, it means “Let the master respond.”

Non-delegable Duty

A legal obligation that cannot be transferred to another party and must be performed by the individual or entity to whom it is assigned.

Tort

A private wrong that injures another person’s physical well-being, property, or reputation.

Insane

A term used to describe severe mental illness or incapacity, often legally defined in the context of an individual's fitness to stand trial or make decisions.