Exhibit 20 $\$ 3.25$ Premium
-Refer to Exhibit 20

question 106

Multiple Choice

Exhibit 20.4
Use the Information Below for the Following Problem(S)
Rick Thompson is considering the following alternatives for investing in Davis Industries which is now selling for $44 per share:
(1) Buy 500 shares, and
(2) Buy six month call options with mexercise price of 45 for $\$ 3.25$ premium
-Refer to Exhibit 20.4.Assuming no commissions or taxes what is the annualized percentage gain if the stock reaches $50 in four months and a call was purchased?

• A) 161.54% gain
• B) 53.85% gain
• C) 161.54% loss
• D) 11.11% gain
• E) 53.85% loss

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Definitions:

Unconscious Memories

Memories that are not within an individual's conscious awareness, often influencing behaviors and decisions without one's explicit understanding.

Cerebellum

The part of the brain at the back of the skull in vertebrates, which coordinates and regulates muscular activity.

Hippocampus

A major component of the brain, located in the medial temporal lobe, playing important roles in the consolidation of information from short-term memory to long-term memory, and in spatial memory that enables navigation.

Types Of Memories

The classification of memory into different types, such as short-term, long-term, procedural, and episodic memory.